I
107TH CONGRESS
2D SESSION
H. R. 5094
To establish the Federal Accounting Standards Advisory Board.
IN THE HOUSE OF REPRESENTATIVES
JULY 11, 2002
Mr. KIRK (for himself, Mr. BEREUTER, Mr. HYDE, Mrs. MCCARTHY of New
York, Mrs. MINK of Hawaii, Mr. NUSSLE, Mr. PETRI, Mrs. TAUSCHER,
and Mr. WILSON of South Carolina) introduced the following bill; which
was referred to the Committee on Government Reform
A BILL
To establish the Federal Accounting Standards Advisory
Board.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. FEDERAL ACCOUNTING STANDARDS ADVISORY
BOARD.
(a) FINDINGS.—Congress finds the following:
(1) There is a need for objective and neutral
Federal Government accounting standards. To be
objective and neutral, standards must ensure that
the resulting information is a faithful representation
of the effects of Federal Government activities. Ob-
jective and neutral mean free from bias, without
placing any particular interest above the interest of
individuals who rely on the information in financial
reports of the Federal Government.
(2) Accounting standards are essential to the
efficient functioning of the Federal Government and
the economy, as decisions about the allocation of re-
sources rely heavily on credible, concise, and under-
standable financial information. Financial informa-
tion about the operations and financial position of
the Federal Government is used by citizens, Con-
gress, executives, and program managers.
(3) The Joint Financial Management Improve-
ment Program, established by the General Account-
ing Office, the Department of Treasury, and Office
of Management and Budget, conducts a continuous
program for improving accounting and financial re-
porting in the Federal Government.
(4) The Comptroller General, the Secretary of
the Treasury, and the Director of the Office of Man-
agement and Budget have established an advisory
board in accordance with the Federal Advisory Com-
mittee Act (5 U.S.C. App.), to consider and rec-
ommend accounting concepts and standards for the
Federal Government.
(b) PURPOSE.—The purpose of this Act is to affirm
the Memorandum of Understanding Among the General
Accounting Office, the Department of the Treasury, and
the Office of Management and Budget on Federal Govern-
ment Accounting Standards and a Federal Accounting
Standards Advisory Board dated January 11, 2002, effec-
tive June 30, 2002.
(c) ESTABLISHMENT OF BOARD.—There is hereby
established the Federal Accounting Standards Advisory
Board (hereinafter in this Act referred to as the ‘‘Board’’).
The Board shall work under the general oversight of the
Comptroller General, the Secretary of the Treasury, and
the Director of the Office of Management and Budget
(hereinafter in this Act referred to as the ‘‘Principals’’).
(d) MEETINGS; PROCEDURES.—The Board shall—
(1) meet as necessary and at the request of one
of the Principals; and
(2) establish detailed working procedures for
the Board.
(e) COMPOSITION.—(1) The Board shall be com-
prised of nine members as follows:
(A) One member who is a representative of the
General Accounting Office appointed by the Comp-
troller General.
(B) One member who is a representative of the
Office of Management and Budget appointed by the
Director of the Office of Management and Budget.
(C) One member who is a representative of the
Department of the Treasury appointed by the Sec-
retary of the Treasury.
(D) Six members appointed jointly by the
Comptroller General, the Director, and the Sec-
retary, who are—
(i) representatives of the financial commu-
nity, the accounting and auditing community,
and the academic community; and
(ii) not representatives of the Federal Gov-
ernment.
(2) In selecting members under paragraph (1)(D),
the Principals shall—
(A) seek nominations from a wide variety of
sources;
(B) 
consider, 
among 
other 
criteria, 
an
individual’s—
(i) broad professional background; and
(ii) expertise in Federal Government ac-
counting, financial reporting, and financial
management; and