H. R. 1345—45
‘‘(e) SUBMISSION OF REPORTS TO DISTRICT OF COLUMBIA FINAN-
CIAL RESPONSIBILITY AND MANAGEMENT ASSISTANCE AUTHORITY.—
In the case of any report submitted by the Mayor under this
section for a fiscal year (or any quarter of a fiscal year) which
is a control year under the District of Columbia Financial Respon-
sibility and Management Assistance Act of 1995, the Mayor shall
submit the report to the District of Columbia Financial Responsibil-
ity and Management Assistance Authority established under section
101(a) of such Act in addition to any other individual to whom
the Mayor is required to submit the report under this section.’’.
(c) COMMENTS REGARDING ACTIVITIES
OF DISTRICT GOVERN-
MENT.—At any time during a control year, the Authority may
submit a report to Congress describing any action taken by the
District government (or any failure to act by the District govern-
ment) which the Authority determines will adversely affect the
District government’s ability to comply with an approved financial
plan and budget under subtitle A or will otherwise have a significant
adverse impact on the best interests of the District of Columbia.
(d) REPORTS
ON
EFFECT
OF
FEDERAL
LAWS
ON
DISTRICT
GOVERNMENT.—At any time during any year, the Authority may
submit a report to the Mayor, the Council, the President, and
Congress on the effect of laws enacted by Congress on the financial
plan and budget for the year and on the financial stability and
management efficiency of the District government in general.
(e) MAKING REPORTS PUBLICLY AVAILABLE.—The Authority
shall make any report submitted under this section available to
the public, except to the extent that the Authority determines
that the report contains confidential material.
TITLE III—MISCELLANEOUS
PROVISIONS
SEC. 301. OTHER DISTRICT BUDGET REFORMS.
(a) INCLUSION OF ALL FUNDS OF DISTRICT IN BUDGET OF DIS-
TRICT GOVERNMENT.—
(1) IN GENERAL.—Section 103 of the District of Columbia
Self-Government and Governmental Reorganization Act (sec.
1–202, D.C. Code) is amended—
(A) by amending paragraph (10) to read as follows:
‘‘(10) The term ‘District revenues’ means all funds derived
from taxes, fees, charges, miscellaneous receipts, the annual
Federal payment to the District authorized under title V, grants
and other forms of financial assistance, or the sale of bonds,
notes, or other obligations, and any funds administered by
the District government under cost sharing arrangements.’’;
(B) by amending paragraph (14) to read as follows:
‘‘(14) The term ‘resources’ means revenues, balances, enter-
prise or other revolving funds, and funds realized from borrow-
ing.’’; and
(C) by amending paragraph (15) to read as follows:
‘‘(15) The term ‘budget’ means the entire request for appro-
priations or loan or spending authority for all activities of
all departments or agencies of the District of Columbia financed
from all existing, proposed or anticipated resources, and shall
include both operating and capital expenditures.’’.
H. R. 1345—46
(2) EFFECTIVE DATE.—The amendments made by paragraph
(1) shall apply with respect to revenues, resources, and budgets
of the District of Columbia for fiscal years beginning with
fiscal year 1996.
(b) RESTRICTIONS ON REPROGRAMMING OF FUNDS.—
(1) IN GENERAL.—Section 446 of such Act (sec. 47–304,
D.C. Code) is amended by adding at the end the following:
‘‘After the adoption of the annual budget for a fiscal year
(beginning with the annual budget for fiscal year 1995), no
reprogramming of amounts in the budget may occur unless
the Mayor submits to the Council a request for such
reprogramming and the Council approves the request, but only
if any additional expenditures provided under such request
for an activity are offset by reductions in expenditures for
another activity.’’.
(2) CONFORMING AMENDMENT.—Section 5 of D.C. Law 3–
100 (sec. 47–364, D.C. Code) is hereby repealed.
(c) PERMITTING COUNCIL TO REQUEST BUDGET ADJUSTMENTS
FROM MAYOR.—Section 442 of the District of Columbia Self-Govern-
ment and Governmental Reorganization Act (sec. 47–301, D.C.
Code) is amended by adding at the end the following new subsection:
‘‘(d) The Mayor shall prepare and submit to the Council a
proposed supplemental or deficiency budget recommendation under
subsection (c) if the Council by resolution requests the Mayor to
submit such a recommendation.’’.
(d) REQUIRING BUDGETARY IMPACT STATEMENTS TO ACCOMPANY
ACTS OF COUNCIL.—
(1) IN GENERAL.—Section 602(c) of the District of Columbia
Self-Government and Governmental Reorganization Act (sec.
1–233(c), D.C. Code) is amended by adding at the end the
following new paragraph:
‘‘(3) The Council shall submit with each Act transmitted under
this subsection an estimate of the costs which will be incurred
by the District of Columbia as a result of the enactment of the
Act in each of the first 4 fiscal years for which the Act is in
effect, together with a statement of the basis for such estimate.’’.
(2) EFFECTIVE DATE.—The amendment made by paragraph
(1) shall apply to Acts of the Council transmitted on or after
October 1, 1995.
(e) EXTENSION OF AUTHORIZATION OF ANNUAL FEDERAL PAY-
MENT.—Section 503(c) of the District of Columbia Self-Government
and Governmental Reorganization Act (sec. 47–3406.1(c), D.C.
Code), as added by section 2 of the Federal Payment Reauthoriza-
tion Act of 1994, is amended by striking ‘‘fiscal year 1996’’ and
inserting ‘‘each of the fiscal years 1996, 1997, 1998, and 1999’’.
SEC. 302. ESTABLISHMENT OF CHIEF FINANCIAL OFFICER OF DIS-
TRICT OF COLUMBIA.
(a) IN GENERAL.—Part B of title IV of the District of Columbia
Self-Government and Governmental Reorganization Act is amended
by adding at the end the following new section:
‘‘CHIEF FINANCIAL OFFICER OF THE DISTRICT OF COLUMBIA
‘‘SEC. 424. (a) ESTABLISHMENT OF OFFICE.—
‘‘(1) IN GENERAL.—There is hereby established within the
executive branch of the government of the District of Columbia
an Office of the Chief Financial Officer of the District of Colum-
H. R. 1345—47
bia (hereafter referred to as the ‘Office’), which shall be headed
by the Chief Financial Officer of the District of Columbia (here-
after referred to as the ‘Chief Financial Officer’).
‘‘(2) OFFICE OF THE TREASURER.—The Office shall include
the Office of the Treasurer, which shall be headed by the
Treasurer of the District of Columbia, who shall be appointed
by the Chief Financial Officer and subject to the Chief Financial
Officer’s direction and control.
‘‘(3) TRANSFER
OF
OTHER
OFFICES.—Effective with the
appointment of the first Chief Financial Officer under sub-
section (b), the functions and personnel of the following offices
are transferred to the Office:
‘‘(A) The Controller of the District of Columbia.
‘‘(B) The Office of the Budget.
‘‘(C) The Office of Financial Information Services.
‘‘(D) The Department of Finance and Revenue.
‘‘(4) SERVICE OF HEADS OF OTHER OFFICES.—
‘‘(A) OFFICE
HEADS
APPOINTED
BY
MAYOR.—With
respect to the head of the Office of the Budget and the
head of the Department of Finance and Revenue—
‘‘(i) the Mayor shall appoint such individuals with
the advice and consent of the Council, subject to the
approval of the Authority during a control year; and
‘‘(ii) during a control year, the Authority may
remove such individuals from office for cause, after
consultation with the Mayor.
‘‘(B) OFFICE
HEADS
APPOINTED
BY
CHIEF
FINANCIAL
OFFICER.—With respect to the Controller of the District
of Columbia and the head of the Office of Financial
Information Services—
‘‘(i) the Chief Financial Officer shall appoint such
individuals subject to the approval of the Mayor; and
‘‘(ii) the Chief Financial Officer may remove such
individuals from office for cause, after consultation
with the Mayor.
‘‘(b) APPOINTMENT.—
‘‘(1) IN GENERAL.—
‘‘(A) CONTROL YEAR.—During a control year, the Chief
Financial Officer shall be appointed by the Mayor as fol-
lows:
‘‘(i) Prior to the appointment of the Chief Financial
Officer, the Authority may submit recommendations
for the appointment to the Mayor.
‘‘(ii) In consultation with the Authority and the
Council, the Mayor shall nominate an individual for
appointment and notify the Council of the nomination.
‘‘(iii) After the expiration of the 7-day period which
begins on the date the Mayor notifies the Council
of the nomination under clause (ii), the Mayor shall
notify the Authority of the nomination.
‘‘(iv) The nomination shall be effective subject to
approval by a majority vote of the Authority.
‘‘(B) OTHER YEARS.—During a year other than a control
year, the Chief Financial Officer shall be appointed by
the Mayor with the advice and consent of the Council.
Prior to appointment, the Authority may submit rec-
ommendations for the appointment.
H. R. 1345—48
‘‘(2) REMOVAL.—
‘‘(A) CONTROL YEAR.—During a control year, the Chief
Financial Officer may be removed for cause by the Author-
ity or by the Mayor with the approval of the Authority.
‘‘(B) OTHER YEARS.—During a year other than a control
year, the Chief Financial Officer shall serve at the pleasure
of the Mayor, except that the Chief Financial Officer may
only be removed for cause.
‘‘(3) SALARY.—The Chief Financial Officer shall be paid
at an annual rate determined by the Mayor, except that such
rate may not exceed the rate of basic pay payable for level
IV of the Executive Schedule.
‘‘(c) FUNCTIONS DURING CONTROL YEAR.—During a control year,
the Chief Financial Officer shall have the following duties:
‘‘(1) Preparing the financial plan and budget for the use
of the Mayor for purposes of subtitle A of title II of the District
of Columbia Financial Responsibility and Management Assist-
ance Act of 1995.
‘‘(2) Preparing the budgets of the District of Columbia
for the year for the use of the Mayor for purposes of part
D.
‘‘(3) Assuring that all financial information presented by
the Mayor is presented in a manner, and is otherwise consistent
with, the requirements of the District of Columbia Financial
Responsibility and Management Assistance Act of 1995.
‘‘(4) Implementing appropriate procedures and instituting
such programs, systems, and personnel policies within the Offi-
cer’s authority, to ensure that budget, accounting and personnel
control systems and structures are synchronized for budgeting
and control purposes on a continuing basis.
‘‘(5) With the approval of the Authority, preparing and
submitting to the Mayor and the Council—
‘‘(A) annual estimates of all revenues of the District
of Columbia (without regard to the source of such reve-
nues), including proposed revenues, which shall be binding
on the Mayor and the Council for purposes of preparing
and submitting the budget of the District government for
the year under part D, except that the Mayor and the
Council may prepare the budget based on estimates of
revenues which are lower than those prepared by the Chief
Financial Officer; and
‘‘(B) quarterly re-estimates of the revenues of the Dis-
trict of Columbia during the year.
‘‘(6) Supervising and assuming responsibility for financial
transactions to ensure adequate control of revenues and
resources, and to ensure that appropriations are not exceeded.
‘‘(7) Maintaining systems of accounting and internal control
designed to provide—
‘‘(A) full disclosure of the financial impact of the activi-
ties of the District government;
‘‘(B) adequate financial information needed by the Dis-
trict government for management purposes;
‘‘(C) effective control over, and accountability for, all
funds, property, and other assets of the District of Colum-
bia; and
H. R. 1345—49
‘‘(D) reliable accounting results to serve as the basis
for preparing and supporting agency budget requests and
controlling the execution of the budget.
‘‘(8) Submitting to the Council a financial statement of
the District government, containing such details and at such
times as the Council may specify.
‘‘(9) Supervising and assuming responsibility for the assess-
ment of all property subject to assessment and special assess-
ments within the corporate limits of the District of Columbia
for taxation, preparing tax maps, and providing such notice
of taxes and special assessments (as may be required by law).
‘‘(10) Supervising and assuming responsibility for the levy-
ing and collection of all taxes, special assessments, licensing
fees, and other revenues of the District of Columbia (as may
be required by law), and receiving all amounts paid to the
District of Columbia from any source (including the Authority).
‘‘(11) Maintaining custody of all public funds belonging
to or under the control of the District government (or any
department or agency of the District government), and deposit-
ing all amounts paid in such depositories and under such
terms and conditions as may be designated by the Council
or the Authority.
‘‘(12) Maintaining custody of all investment and invested
funds of the District government or in possession of the District
government in a fiduciary capacity, and maintaining the safe-
keeping of all bonds and notes of the District government
and the receipt and delivery of District government bonds and
notes for transfer, registration, or exchange.
‘‘(13) Apportioning the total of all appropriations and funds
made available during the year for obligation so as to prevent
obligation or expenditure in a manner which would result in
a deficiency or a need for supplemental appropriations during
the year, and (with respect to appropriations and funds avail-
able for an indefinite period and all authorizations to create
obligations by contract in advance of appropriations) apportion-
ing the total of such appropriations, funds, or authorizations
in the most effective and economical manner.
‘‘(14) Certifying all contracts (whether directly or through
delegation) prior to execution as to the availability of funds
to meet the obligations expected to be incurred by the District
government under such contracts during the year.
‘‘(15) Prescribing the forms of receipts, vouchers, bills, and
claims to be used by all agencies, offices, and instrumentalities
of the District government.
‘‘(16) Certifying and approving prior to payment all bills,
invoices, payrolls, and other evidences of claims, demands, or
charges against the District government, and determining the
regularity, legality, and correctness of such bills, invoices, pay-
rolls, claims, demands, or charges.
‘‘(17) In coordination with the Inspector General of the
District of Columbia, performing internal audits of accounts
and operations and records of the District government, includ-
ing the examination of any accounts or records of financial
transactions, giving due consideration to the effectiveness of
accounting systems, internal control, and related administrative
practices of the departments and agencies of the District
government.
H. R. 1345—50
‘‘(d) FUNCTIONS DURING ALL YEARS.—At all times, the Chief
Financial Officer shall have the following duties:
‘‘(1) Exercising responsibility for the administration and
supervision of the District of Columbia Treasurer (except that
the Chief Financial Officer may delegate any portion of such
responsibility as the Chief Financial Officer considers appro-
priate and consistent with efficiency).
‘‘(2) Administering all borrowing programs of the District
government for the issuance of long-term and short-term indebt-
edness.
‘‘(3) Administering the cash management program of the
District government, including the investment of surplus funds
in governmental and non-governmental interest-bearing securi-
ties and accounts.
‘‘(4) Administering the centralized District government pay-
roll and retirement systems.
‘‘(5) Governing the accounting policies and systems
applicable to the District government.
‘‘(6) Preparing appropriate annual, quarterly, and monthly
financial reports of the accounting and financial operations
of the District government.
‘‘(7) Not later than 120 days after the end of each fiscal
year (beginning with fiscal year 1995), preparing the complete
financial statement and report on the activities of the District
government for such fiscal year, for the use of the Mayor
under section 448(a)(4) of the District of Columbia Self-Govern-
ment and Governmental Reorganization Act.
‘‘(e) FUNCTIONS OF TREASURER.—At all times, the Treasurer
shall have the following duties:
‘‘(1) Assisting the Chief Financial Officer in reporting reve-
nues received by the District government, including submitting
annual and quarterly reports concerning the cash position of
the District government not later than 60 days after the last
day of the quarter (or year) involved. Such reports shall include:
‘‘(A) Comparative reports of revenue and other receipts
by source, including tax, nontax, and Federal revenues,
grants and reimbursements, capital program loans, and
advances. Each source shall be broken down into specific
components.
‘‘(B) Statements of the cash flow of the District govern-
ment for the preceding quarter or year, including receipts,
disbursements, net changes in cash inclusive of the begin-
ning balance, cash and investment, and the ending balance,
inclusive of cash and investment. Such statements shall
reflect the actual, planned, better or worse dollar amounts
and the percentage change with respect to the current
quarter, year-to-date, and fiscal year.
‘‘(C) Quarterly cash flow forecast for the quarter or
year involved, reflecting receipts, disbursements, net
change in cash inclusive of the beginning balance, cash
and investment, and the ending balance, inclusive of cash
and investment with respect to the actual dollar amounts
for the quarter or year, and projected dollar amounts for
each of the 3 succeeding quarters.
‘‘(D) Monthly reports reflecting a detailed summary
analysis of all District of Columbia government invest-
ments, including, but not limited to—
H. R. 1345—51
‘‘(i) the total of long-term and short-term invest-
ments;
‘‘(ii) a detailed summary analysis of investments
by type and amount, including purchases, sales (matu-
rities), and interest;
‘‘(iii) an analysis of investment portfolio mix by
type and amount, including liquidity, quality/risk of
each security, and similar information;
‘‘(iv) an analysis of investment strategy, including
near-term strategic plans and projects of investment
activity, as well as forecasts of future investment
strategies based on anticipated market conditions, and
similar information;
‘‘(v) an analysis of cash utilization, including—
‘‘(I) comparisons of budgeted percentages of
total cash to be invested with actual percentages
of cash invested and the dollar amounts;
‘‘(II) comparisons of the next return on
invested cash expressed in percentages (yield) with
comparable market indicators and established Dis-
trict of Columbia government yield objectives; and
‘‘(III) comparisons of estimated dollar return
against actual dollar yield.
‘‘(E) Monthly reports reflecting a detailed summary
analysis of long-term and short-term borrowings inclusive
of debt as authorized by section 603, in the current fiscal
year and the amount of debt for each succeeding fiscal
year not to exceed 5 years. All such reports shall reflect—
‘‘(i) the amount of debt outstanding by type of
instrument;
‘‘(ii) the amount of authorized and unissued debt,
including availability of short-term lines of credit,
United States Treasury borrowings, and similar
information;
‘‘(iii) a maturity schedule of the debt;
‘‘(iv) the rate of interest payable upon the debt;
and
‘‘(v) the amount of debt service requirements and
related debt service reserves.
‘‘(2) Such other functions assigned to the Chief Financial
Officer under subsection (c) or subsection (d) as the Chief
Financial Officer may delegate.
‘‘(f) DEFINITIONS.—In this section—
‘‘(1) the term ‘Authority’ means the District of Columbia
Financial Responsibility and Management Assistance Authority
established under section 101(a) of the District of Columbia
Financial Responsibility and Management Assistance Act of
1995;
‘‘(2) the term ‘control year’ has the meaning given such
term under section 305(4) of such Act; and
‘‘(3) the term ‘District government’ has the meaning given
such term under section 305(5) of such Act.’’.
(b) PROHIBITING DELEGATION OF CHIEF FINANCIAL OFFICER’S
AUTHORITY.—Section 422(6) of the District of Columbia Self-Govern-
ment and Governmental Reorganization Act (sec. 1–242(6), D.C.
Code) is amended by adding at the end the following: ‘‘Nothing
in the previous sentence may be construed to permit the Mayor
H. R. 1345—52
to delegate any functions assigned to the Chief Financial Officer
of the District of Columbia under section 424, without regard to
whether such functions are assigned to the Chief Financial Officer
under such section during a control year (as defined in section
305(4) of the District of Columbia Financial Responsibility and
Management Assistance Act of 1995) or during any other year.’’.
(c) CONFORMING AMENDMENT.—Effective upon the appointment
of the Chief Financial Officer of the District of Columbia under
section 424(b) of the District of Columbia Self-Government and
Governmental Reorganization Act (as added by subsection (a)), D.C.
Law 3–138 (sec. 47–314 et seq., D.C. Code) is repealed.
(d) CLERICAL AMENDMENT.—The table of contents of part B
of title IV of the District of Columbia Self-Government and Govern-
mental Reorganization Act is amended by adding at the end the
following new item:
‘‘Sec. 424. Chief Financial Officer of the District of Columbia.’’.
SEC. 303. REVISIONS TO POWERS AND DUTIES OF INSPECTOR GEN-
ERAL OF DISTRICT OF COLUMBIA.
(a) APPOINTMENT AND TERM OF SERVICE; INDEPENDENCE OF
BUDGET.—Section 208(a) of the District of Columbia Procurement
Practices Act of 1985 (sec. 1–1182.8(a), D.C. Code) is amended
by striking paragraphs (1) and (2) and inserting the following:
‘‘(1)(A) There is created within the executive branch of the
government of the District of Columbia the Office of the Inspector
General. The Office shall be headed by an Inspector General ap-
pointed pursuant to subparagraph (B), who shall serve for a term
of 6 years and shall be subject to removal only for cause by the
Mayor (with the approval of the District of Columbia Financial
Responsibility and Management Assistance Authority in a control
year) or (in the case of a control year) by the Authority. The
Inspector General may be reappointed for additional terms.
‘‘(B) During a control year, the Inspector General shall be
appointed by the Mayor as follows:
‘‘(i) Prior to the appointment of the Inspector General,
the Authority may submit recommendations for the appoint-
ment to the Mayor.
‘‘(ii) In consultation with the Authority and the Council,
the Mayor shall nominate an individual for appointment and
notify the Council of the nomination.
‘‘(iii) After the expiration of the 7-day period which begins
on the date the Mayor notifies the Council of the nomination
under clause (ii), the Mayor shall notify the Authority of the
nomination.
‘‘(iv) The nomination shall be effective subject to approval
by a majority vote of the Authority.
‘‘(C) During a year which is not a control year, the Inspector
General shall be appointed by the Mayor with the advice and
consent of the Council. Prior to appointment, the Authority may
submit recommendations for the appointment.
‘‘(D) The Inspector General shall be appointed without regard
to party affiliation and solely on the basis of integrity and dem-
onstrated ability in accounting, auditing, financial management
analysis, public administration, or investigations.
‘‘(E) The Inspector General shall be paid at an annual rate
determined by the Mayor, except that such rate may not exceed
the rate of basic pay payable for level IV of the Executive Schedule.
H. R. 1345—53
‘‘(2) The annual budget for the Office shall be adopted as
follows:
‘‘(A) The Inspector General shall prepare and submit to
the Mayor, for inclusion in the annual budget of the District
of Columbia under part D of title IV of the District of Columbia
Self-Government and Governmental Reorganization Act for the
year, annual estimates of the expenditures and appropriations
necessary for the operation of the Office for the year. All such
estimates shall be forwarded by the Mayor to the Council
of the District of Columbia for its action pursuant to sections
446 and 603(c) of such Act, without revision but subject to
recommendations. Notwithstanding any other provision of such
Act, the Council may comment or make recommendations
concerning such estimates, but shall have no authority to revise
such estimates.
‘‘(B) Upon receipt of the annual Federal payment for the
District of Columbia authorized under title V of the District
of Columbia Self-Government and Governmental Reorganiza-
tion Act, the Mayor shall deposit a portion of the payment
(equal to the estimate of necessary appropriations described
in subparagraph (A)) into a dedicated fund within the govern-
ment of the District of Columbia.
‘‘(C) Amounts deposited in the dedicated fund described
in subparagraph (B) shall be available solely for the operation
of the Office, and shall be paid to the Inspector General by
the Mayor (acting through the Chief Financial Officer of the
District of Columbia) in such installments and at such times
as the Inspector General requires.’’.
(b) ADDITIONAL POWERS AND DUTIES.—
(1) IN GENERAL.—Section 208(a)(3) of the District of Colum-
bia Procurement Practices Act of 1985 (sec. 1–1182.8(a)(3), D.C.
Code) is amended—
(A) by striking ‘‘and’’ at the end of subparagraph (E);
(B) by striking the period at the end of subparagraph
(F) and inserting a semicolon; and
(C) by adding at the end the following new subpara-
graphs:
‘‘(G) Pursuant to a contract described in paragraph (4),
provide certifications under section 602(b)(5) of title VI of the
District of Columbia Revenue Act of 1939;
‘‘(H) Pursuant to a contract described in paragraph (4),
audit the complete financial statement and report on the activi-
ties of the District government for such fiscal year, for the
use of the Mayor under section 448(a)(4) of the District of
Columbia Self-Government and Governmental Reorganization
Act; and
‘‘(I) Not later than 30 days before the beginning of each
fiscal year (beginning with fiscal year 1996) and in consultation
with the Mayor, the Council, and the Authority, establish an
annual plan for audits to be conducted under this paragraph
during the fiscal year under which the Inspector General shall
report only those variances which are in an amount equal
to or greater than $1,000,000 or 1 percent of the applicable
annual budget for the program in which the variance is found
(whichever is lesser).’’.