Title: Defense Spending Accountability Act
Policy area: Armed Forces and National Security

Summary:
Defense Spending Accountability Act
This bill imposes on the Deputy Secretary of Defense (Chief Management Officer of the Department of Defense [DOD]), the Under Secretary of Defense (Comptroller), and the Chief Management Officer of each of the military departments: (1) a 5% pay cut if certain financial statements are not validated as ready for audit by September 30, 2017, and (2) a 10% pay cut if such statements for FY2018 are not ready for audit by March 31, 2019.
The bill prescribes the following due process protections for such officials: (1) notice and opportunity to respond, and (2) appeal rights.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2040 Introduced in House (IH)]

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115th CONGRESS
  1st Session
                                H. R. 2040

To impose consequences on the Department of Defense for any failure to 
meet statutory deadlines for validation of financial statements of the 
 Department of Defense as ready for audit and for completion of a full 
 audit on financial statements of the Department of Defense for fiscal 
                               year 2018.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 6, 2017

    Mr. Lewis of Minnesota introduced the following bill; which was 
              referred to the Committee on Armed Services

_______________________________________________________________________

                                 A BILL


 
To impose consequences on the Department of Defense for any failure to 
meet statutory deadlines for validation of financial statements of the 
 Department of Defense as ready for audit and for completion of a full 
 audit on financial statements of the Department of Defense for fiscal 
                               year 2018.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Defense Spending Accountability 
Act''.

SEC. 2. EFFECT OF FAILURE TO MEET DEADLINES FOR VALIDATION OF FINANCIAL 
              STATEMENTS OF THE DEPARTMENT OF DEFENSE AS READY FOR 
              AUDIT AND FOR SUBMISSION OF FULL AUDIT ON FINANCIAL 
              STATEMENTS OF THE DEPARTMENT OF DEFENSE FOR FISCAL YEAR 
              2018.

    (a) Pay Reduction for Failure To Meet Deadlines.--Subject to 
subsection (b), but notwithstanding any other provision of law, the 
annual rate of pay for each Department of Defense position listed in 
subsection (c)--
            (1) beginning with the first pay period commencing on or 
        after the deadline specified in section 1003(a)(2)(A)(ii) of 
        the National Defense Authorization Act for Fiscal Year 2010 
        (Public Law 111-84; 10 U.S.C. 2222 note), and for each pay 
        period thereafter, shall be reduced by 5 percent if the 
        financial statements of the Department of Defense are not 
        validated as ready for audit by that deadline; and
            (2) beginning with the first pay period commencing on or 
        after the deadline specified in section 1003(a)(2)(A)(iii) of 
        the National Defense Authorization Act for Fiscal Year 2010 
        (Public Law 111-84; 10 U.S.C. 2222 note), as added by section 
        1003(b) of the National Defense Authorization Act for Fiscal 
        Year 2014 (Public Law 113-66; 127 Stat. 842), and for each pay 
        period thereafter, shall be reduced by 10 percent if a full 
        audit of the financial statements of the Department of Defense 
        for fiscal year 2018 is not completed by that deadline.
    (b) Due Process Protections.--
            (1) Notice and opportunity to respond.--At least 30 days 
        before a reduction in pay takes effect under paragraph (1) or 
        (2) of subsection (a) for a Department of Defense position 
        listed in subsection (c), the Secretary of Defense shall--
                    (A) notify the individual occupying the position of 
                the imminent pay reduction; and
                    (B) afford the individual an opportunity to prove 
                that the requirement referred to in such paragraph has 
                been satisfied.
            (2) Appeal rights.--The Secretary of Defense also shall 
        afford an individual occupying a position listed in subsection 
        (c) an opportunity to appeal an adverse decision under 
        paragraph (1)(B) against the individual to another department 
        or agency of the Federal Government. If a final decision on the 
        appeal is not made by the applicable department or agency of 
        the Federal Government within 30 days after receiving the 
        appeal, the order of the Secretary imposing the pay reduction 
        shall be final and not subject to further appeal.
    (c) Covered Department of Defense Positions.--The Department of 
Defense positions subject to this section are the following:
            (1) The position of Deputy Secretary of Defense, who serves 
        as the Chief Management Officer of the Department of Defense.
            (2) The position of Under Secretary of Defense 
        (Comptroller).
            (3) The position of Chief Management Officer of each of the 
        military departments.
    (d) Lifting of Pay Reductions.--A reduction in pay imposed under 
paragraph (1) or (2) of subsection (a) shall have no force or effect 
after the date on which the requirement referred to in such paragraph 
is satisfied.
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