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that apply to financial reporting by the Department of 
Homeland Security. 
(d) AUDIT OPINIONS OF INTERNAL CONTROLS OVER 
FINANCIAL REPORTING BY CHIEF FINANCIAL OFFICER 
AGENCIES.— 
(1) IN
GENERAL.—Not later than 180 days 
after the date of the enactment of this Act, the 
Chief Financial Officers Council and the President’s 
Council on Integrity and Efficiency established by 
Executive Order 12805 of May 11, 1992, shall joint-
ly conduct a study of the potential costs and benefits 
of requiring the agencies listed in section 901(b) of 
title 31, United States Code, to obtain audit opin-
ions of their internal controls over their financial re-
porting. 
(2) REPORT.—Upon completion of the study 
under paragraph (1), the Chief Financial Officers 
Council and the President’s Council on Integrity and 
Efficiency shall promptly submit a report on the re-
sults of the study to the Committee on Government 
Reform of the House of Representatives, the Com-
mittee on Governmental Affairs of the Senate, and 
the Comptroller General of the United States. 
(3) GENERAL
ACCOUNTING
OFFICE
ANAL-
YSIS.—Not later than 90 days after receiving the re-
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port under paragraph (2), the Comptroller General 
shall perform an analysis of the information pro-
vided in the report and report the findings of the 
analysis to the committees referred to in paragraph 
(2). 
SEC. 5. FUTURE YEARS HOMELAND SECURITY PROGRAM 
AND HOMELAND SECURITY STRATEGY. 
Section 874 of the Homeland Security Act of 2002 
(6 U.S.C. 112) is amended by striking subsection (b) and 
inserting the following: 
‘‘(b) CONTENTS.—The Future Years Homeland Se-
curity Program under subsection (a) shall— 
‘‘(1) include the same type of information, or-
ganizational structure, and level of detail as the fu-
ture years defense program submitted to Congress 
by the Secretary of Defense under section 221 of 
title 10, United States Code; 
‘‘(2) set forth the homeland security strategy of 
the Department, which shall be developed and up-
dated as appropriate annually by the Secretary, that 
was used to develop program planning guidance for 
the Future Years Homeland Security Program; and 
‘‘(3) include an explanation of how the resource 
allocations included in the Future Years Homeland
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Security Program correlate to the homeland security 
strategy set forth under paragraph (2).’’. 
SEC. 6. ESTABLISHMENT OF OFFICE OF PROGRAM ANAL-
YSIS AND EVALUATION. 
Section 702 of the Homeland Security Act of 2002 
(6 U.S.C. 342) is amended by— 
(1) inserting ‘‘(a) In General.—’’ before the 
first sentence; and 
(2) adding at the end the following: 
‘‘(b) PROGRAM ANALYSIS AND EVALUATION FUNC-
TION.— 
‘‘(1) ESTABLISHMENT OF OFFICE OF PROGRAM 
ANALYSIS
AND
EVALUATION.—Not later than 90 
days after the date of enactment of this subsection, 
the Secretary shall establish an Office of Program 
Analysis and Evaluation within the Department (in 
this section referred to as the ‘Office’). 
‘‘(2) RESPONSIBILITIES.—The Office shall per-
form the following functions: 
‘‘(A) Analyze and evaluate plans, pro-
grams, and budgets of the Department in rela-
tion to United States homeland security objec-
tives, projected threats, vulnerability assess-
ments, estimated costs, resource constraints,
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and the most recent homeland security strategy 
developed pursuant to section 874(b)(2). 
‘‘(B) Develop and perform analyses and 
evaluations of alternative plans, programs, per-
sonnel levels, and budget submissions for the 
Department in relation to United States home-
land security objectives, projected threats, vul-
nerability assessments, estimated costs, re-
source constraints, and the most recent home-
land security strategy developed pursuant to 
section 874(b)(2). 
‘‘(C) Establish policies for, and oversee the 
integration of, the planning, programming, and 
budgeting system of the Department. 
‘‘(D) Review and ensure that the Depart-
ment meets performance-based budget require-
ments established by the Office of Management 
and Budget. 
‘‘(E) Provide guidance for, and oversee the 
development of, the Future Years Homeland 
Security Program of the Department, as speci-
fied under section 874. 
‘‘(F) Ensure that the costs of Department 
programs, including classified programs, are 
presented accurately and completely.
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‘‘(G) Oversee the preparation of the annual 
performance plan for the Department and the 
program and performance section of the annual 
report on program performance for the Depart-
ment, consistent with sections 1115 and 1116, 
respectively, of title 31, United States Code. 
‘‘(H) Provide leadership in developing and 
promoting improved analytical tools and meth-
ods for analyzing homeland security planning 
and the allocation of resources. 
‘‘(I) Any other responsibilities delegated by 
the Secretary consistent with an effective pro-
gram analysis and evaluation function. 
‘‘(3) DIRECTOR
OF
PROGRAM
ANALYSIS
AND 
EVALUATION.—There shall be a Director of Program 
Analysis and Evaluation, who— 
‘‘(A) shall be a principal staff assistant to 
the Chief Financial Officer of the Department 
for program analysis and evaluation; and 
‘‘(B) shall report to an official no lower 
than the Chief Financial Officer. 
‘‘(4) REORGANIZATION.— 
‘‘(A) IN GENERAL.—The Secretary may al-
locate or reallocate the functions of the Office,
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or discontinue the Office, in accordance with 
section 872(a). 
‘‘(B) EXEMPTION
FROM
LIMITATIONS.— 
Section 872(b) shall not apply to any action by 
the Secretary under this paragraph.’’. 
SEC. 7. NOTIFICATION REGARDING TRANSFER OR RE-
PROGRAMMING OF FUNDS FOR DEPARTMENT 
OF HOMELAND SECURITY. 
Section 702 of the Homeland Security Act of 2002 
(6 U.S.C. 342) is further amended by adding at the end 
the following: 
‘‘(c) NOTIFICATION REGARDING TRANSFER OR RE-
PROGRAMMING OF FUNDS.—In any case in which appro-
priations available to the Department or any officer of the 
Department are transferred or reprogrammed and notice 
of such transfer or reprogramming is submitted to the 
Congress (including any officer, office, or Committee of 
the Congress), the Chief Financial Officer of the Depart-
ment shall simultaneously submit such notice to the Select 
Committee on Homeland Security (or any successor to the 
jurisdiction of that committee) and the Committee on Gov-
ernment Reform of the House of Representatives, and to 
the Committee on Governmental Affairs of the Senate.’’. 
Passed the House of Representatives July 20, 2004. 
Attest: 
JEFF TRANDAHL, 
Clerk.