Federal Financial Statement Transparency Act of 2014

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Federal Financial Statement 
Transparency Act of 2014''.

SEC. 2. FEDERAL ACCOUNTING STANDARDS ADVISORY BOARD.

    There is established in the executive branch of the Government an 
independent establishment to be known as the Federal Accounting 
Standards Advisory Board (in this Act referred to as the ``Board'').

SEC. 3. MEMBERSHIP.

    (a) Number and Appointment.--The Board shall be composed of 10 
members appointed as follows:
            (1) One member shall be an employee of the Government 
        Accountability Office, appointed by the Comptroller General of 
        the United States (in this Act referred to as the ``Comptroller 
        General'').
            (2) One member shall be an employee of the Office of 
        Management and Budget, appointed by the Director of the Office 
        of Management and Budget (in this Act referred to as the 
        ``Director'').
            (3) One member shall be an employee of the Department of 
        the Treasury, appointed by the Secretary of the Treasury (in 
        this Act referred to as the ``Secretary''), who may not 
        participate in any votes held pursuant to section 4(c)(1).
            (4) Seven members shall be appointed from the general 
        financial community, the accounting and auditing community, or 
        academia by an appointment panel consistent with the 
        requirements of subsection (d).
    (b) Requirements for Non-Federal Members.--Members appointed 
pursuant to subsection (a)(4) may not be selected from among Federal 
employees.
    (c) Terms.--
            (1) Federal members.--A member appointed pursuant to 
        paragraph (1), (2), or (3) of subsection (a) shall serve on the 
        Board at the discretion of the head of each agency that 
        appoints such a member.
            (2) Non-federal members.--Members appointed pursuant to 
        subsection (a)(4) shall serve for a term not to exceed 5 years 
        and that, upon approval of an appointment panel described in 
        subsection (d), may be renewed for an additional term not to 
        exceed 5 years.
    (d) Appointment Panel.--
            (1) Initial appointment panel membership.--Upon 
        appointment, the member appointed by the Comptroller General 
        pursuant to subsection (a)(1) shall convene an appointment 
        panel consisting of not more than 6 individuals as follows:
                    (A) The member appointed by the Comptroller General 
                pursuant to subsection (a)(1), who shall serve as chair 
                of the initial appointment panel.
                    (B) The members appointed by the Director and the 
                Secretary, respectively, pursuant to paragraphs (2) and 
                (3) of subsection (a).
                    (C) One representative from the Financial 
                Accounting Foundation (or a successor organization).
                    (D) Two representatives from an organization that 
                nationally represents the interests of the certified 
                public accountant profession by--
                            (i) serving as an advocate before 
                        legislative and regulatory entities, public 
                        interest organizations, and professional 
                        organizations;
                            (ii) developing standards for audits of 
                        nonpublic entities and guidelines for services 
                        of certified public accountants;
                            (iii) providing professional tools and 
                        training to certified public accountants; and
                            (iv) monitoring and enforcing compliance 
                        with technical and ethical standards for 
                        certified public accountants.
            (2) Duties of appointment panel.--The appointment panel 
        established under this subsection shall appoint members 
        pursuant to subsection (a)(4) to serve on the Board.
            (3) Expiration.--The chair shall dissolve the appointment 
        panel upon completion of the duties described in paragraph (2).
            (4) Selection of chair of subsequent appointment panel.--
        The Secretary, the Director, and the Comptroller General shall 
        select one member appointed pursuant to subsection (a)(4) to 
        serve as the chair of the Board and the chair of a subsequent 
        appointment panel.
            (5) Subsequent appointment panel.--The chair selected 
        pursuant to paragraph (4) shall convene an appointment panel 
        before the expiration of the term of the Board members 
        appointed pursuant to subsection (a)(4).

SEC. 4. DUTIES; CONCEPTS AND STANDARDS.

    (a) Duties of FASAB.--The Board shall develop Federal financial 
accounting concepts or standards and give consideration to the 
budgetary information needs of executive agencies and the needs of 
users of Federal financial information.
    (b) Restriction on Duties.--The Board may not set or propose budget 
concepts, standards, or principles.
    (c) Concepts and Standards.--
            (1) FASAB vote.--The Board shall submit to the Director and 
        the Comptroller General any Federal financial accounting 
        concepts or standards developed under subsection (a) that 
        receive a favorable vote by at least \2/3\ of the Board members 
        (except as provided in section 3(a)(3)).
            (2) OMB and gao review.--
                    (A) Automatic acceptance.--Except as provided in 
                subparagraph (B), the concept or standard described in 
                paragraph (1) shall be submitted to the Secretary at 
                the end of the 90-day period beginning on the date the 
                Director and the Comptroller General receive the 
                concept or standard.
                    (B) Process for rejection.--If the Director or the 
                Comptroller General disapproves of the concept or 
                standard described in paragraph (1), the Director or 
                the Comptroller General shall, not later than 90 days 
                after receiving such concept or standard, reject such 
                concept or standard and submit such concept or standard 
                to the Board for reconsideration.
                    (C) Report for rejection.--Not later than 5 days 
                after submitting the concept or standard to the Board 
                for reconsideration, the Director or the Comptroller 
                General shall submit to Congress and the organization 
                described in section 3(d)(1)(D) a report, which shall 
                be made available to the public, describing the 
                rejected concept or standard and the basis for the 
                rejection.
            (3) FASAB publication.--At the end of the period described 
        in paragraph (2)(A), the Board shall publish the concept or 
        standard submitted to the Secretary pursuant to such paragraph 
        in the Federal Register.
            (4) Treasury review.--
                    (A) In general.--Except as provided in subparagraph 
                (B), if the Secretary decides not to adopt a concept or 
                standard submitted pursuant to subsection (c)(2)(A), 
                the Secretary shall submit, along with the annual 
                report submitted pursuant to section 331(e)(1) of title 
                31, United States Code, a description of any rejected 
                concept or standard and the basis for the rejection.
                    (B) Exception for immaterial deviations.--The 
                requirements of subparagraph (A) do not apply if the 
                Secretary determines that the application of the 
                concept or standard would not have a material effect on 
                the annual report submitted pursuant to section 
                331(e)(1) of title 31, United States Code.
    (d) GAO Audit.--If, in conducting an audit of the annual report 
submitted by the Secretary pursuant to section 331(e)(1) of title 31, 
United States Code, the Comptroller General finds a material deviation 
from generally accepted accounting principles in such report, the 
Secretary shall submit to the Comptroller General an explanation for 
such deviation not later than 30 days after notification of such 
deviation.

SEC. 5. FASAB OPERATIONS FUND.

    (a) Establishment.--The Secretary of the Treasury shall establish a 
fund, to be available without fiscal year limitation, to provide funds 
to the Board for the purpose of carrying out its duties under this Act.
    (b) Amount.--The Board shall determine the annual cost of carrying 
out its duties.
    (c) Deposits.--Beginning on the first day of the first full fiscal 
year that begins after the date of enactment of this Act, the Secretary 
of the Treasury shall assess a fee on each sale of a security under 
chapter 31 of title 31, United States Code, in an annual aggregate 
amount equal to the amount specified in subsection (b), and deposit 
such amount into the fund.
    (d) Use of Funds.--Amounts in the fund may be used by the Board, 
for the purpose of carrying out the duties of the Board under this Act 
without further appropriation, beginning on the first day of the fiscal 
year beginning after the fiscal year described in subsection (c).

SEC. 6. EFFECTIVE DATE.

    Sections 3 and 4 of this Act shall take effect on the date that 
amounts in the fund described in section 5 are transferred to the 
Board.

Summary: Federal Financial Statement Transparency Act of 2014 - Establishes in the executive branch an independent Federal Accounting Standards Advisory Board (FASAB) to develop federal financial accounting concepts or standards, giving consideration to the budgetary information needs of executive agencies and the needs of users of federal financial information. Directs the Secretary of the Treasury to establish a FASAB operations fund to enable the FASAB to carry out its duties. Requires the Secretary to assess a fee on each sale of a security for deposit into the fund.