Source: https://www.govinfo.gov/content/pkg/USCODE-2017-title31/html/USCODE-2017-title31-subtitleIII-chap35-subchapII-sec3512.htm
Timestamp: 2019-04-20 08:30:21+00:00

Document:
(a)(1) The Director of the Office of Management and Budget shall prepare and submit to the appropriate committees of the Congress and make available on the website described under section 1122 a financial management status report and a governmentwide 5-year financial management plan.
(F) any other information the Director considers appropriate to fully inform the Congress regarding the financial management of the Federal Government.
(3)(A) A governmentwide 5-year financial management plan under this subsection shall describe the activities the Director, the Deputy Director for Management, the Controller of the Office of Federal Financial Management, and agency Chief Financial Officers shall conduct over the next 5 fiscal years to improve the financial management of the Federal Government.
(ix) estimate the costs of implementing the governmentwide 5-year plan.
(4)(A) Not later than 15 months after the date of the enactment of this subsection, the Director of the Office of Management and Budget shall submit the first financial management status report and governmentwide 5-year financial management plan under this subsection to the appropriate committees of the Congress.
(B)(i) Not later than January 31 of each year thereafter, the Director of the Office of Management and Budget shall submit to the appropriate committees of the Congress a financial management status report and a revised governmentwide 5-year financial management plan to cover the succeeding 5 fiscal years, including a report on the accomplishments of the executive branch in implementing the plan during the preceding fiscal year.
(ii) The Director shall include with each revised governmentwide 5-year financial management plan a description of any substantive changes in the financial statement audit plan required by paragraph (3)(B)(viii), progress made by executive agencies in implementing the audit plan, and any improvements in Federal Government financial management related to preparation and audit of financial statements of executive agencies.
(5) Not later than 30 days after receiving each annual report under section 902(a)(6) of this title, the Director shall transmit to the Chairman of the Committee on Government Operations of the House of Representatives and the Chairman of the Committee on Governmental Affairs of the Senate a final copy of that report and any comments on the report by the Director.
(5) suitable integration of the accounting of the agency with the central accounting and reporting responsibilities of the Secretary of the Treasury under section 3513 of this title.
(C) revenues and expenditures applicable to agency operations are recorded and accounted for properly so that accounts and reliable financial and statistical reports may be prepared and accountability of the assets may be maintained.
(2) Standards the Comptroller General prescribes under this subsection shall include standards to ensure the prompt resolution of all audit findings.
(B) may change a guideline when considered necessary.
(B) a separate report on whether the accounting system of the agency conforms to the principles, standards, and requirements the Comptroller General prescribes under section 3511(a) of this title.
(B) required by Executive order to be kept secret in the interest of national defense or the conduct of foreign affairs.
(e) To assist in preparing a cost-based budget under section 1108(b) of this title and consistent with principles and standards the Comptroller General prescribes, the head of each executive agency shall maintain the accounts of the agency on an accrual basis to show the resources, liabilities, and costs of operations of the agency. An accounting system under this subsection shall include monetary property accounting records.
(2) approve the system when the Comptroller General considers it to be adequate and in conformity with the principles, standards, and requirements prescribed under section 3511 of this title.
(g) The Comptroller General shall review the accounting systems of each executive agency. The results of a review shall be available to the head of the executive agency, the Secretary, and the President. The Comptroller General shall report to Congress on a review when the Comptroller General considers it proper.
3512(a) 31:66a(a). Sept. 12, 1950, ch. 946, §§112(c), 113(a), 64 Stat. 835; Reorg. Plan No. 2 of 1970, eff. July 1, 1970, §102(a), 84 Stat. 2085.
3512(b) 31:66a(c). Sept. 12, 1950, ch. 946, 64 Stat. 832, §113(c); added Aug. 1, 1956, ch. 814, §2(b), 70 Stat. 782.
3512(c) 31:66(b)(less Treasury Department). Sept. 12, 1950, ch. 946, §§112(b)(less Treasury Department), 113(b), 64 Stat. 835, 836.
In subsection (a)(3), the words "funds, property, and other" are omitted as surplus.
In subsection (a)(4)(C), the word "President" is substituted for "Office of Management and Budget" because sections 101 and 102(a) of Reorganization Plan No. 2 of 1970 (eff. July 1, 1970, 84 Stat. 2085) redesignated the Bureau of the Budget as the Office of Management and Budget and transferred all functions of the Bureau to the President.
In subsection (a)(5), the words "the accounting of the Treasury Department in connection with" are omitted as surplus.
In subsection (b), the words "As soon as practicable after August 1, 1956" are omitted as executed. The words "with a view", "adequate", and "as an integral part of the system" are omitted as surplus.
In subsections (c) and (d), the words "Comptroller General" are substituted for "General Accounting Office" for consistency. The word "considers" is substituted for "deemed" as being more precise.
In subsection (c), the text of 31:66a(b) is omitted as unnecessary. In clause (1), the words "the head of" are added for consistency with the revised title and other titles of the United States Code. In clause (2), the words "under section 3511 of this title" are substituted for "by him" in 31:66(b)(less Treasury Department) for clarity.
In subsection (d), the word "concerned" is omitted as surplus. The word "President" is substituted for "Director of the Office of Management and Budget" because sections 101 and 102(a) of Reorganization Plan No. 2 of 1970 redesignated the Bureau of the Budget as the Office of Management and Budget and transferred all functions of the Bureau to the President.
3512(b) 31 App.:66a(d)(1). Sept. 12, 1950, ch. 946, 64 Stat. 832, §113(d); added Sept. 8, 1982, Pub. L. 97–255, §2, 96 Stat. 814.
3512(c)(2) (A) 31 App.:66a(d)(3), (4).
3512(c)(2) (B) 31 App.:66a(b)(last sentence). Sept. 12, 1950, ch. 946, 64 Stat. 832, §113(b)(last sentence); added Sept. 8, 1982, Pub. L. 97–255, §4, 96 Stat. 815.
In subsections (b)(1) and (c)(1)(A), the words "the requirements of" are omitted as surplus.
In subsection (b)(1), before clause (A), the words "the head of" are added for consistency in the revised title and with other titles of the United States Code. The word "provide" is omitted as surplus. In clause (B), the word "all" is substituted for "funds, property, and other" to eliminate unnecessary words.
In subsection (c)(1)(A), the words "the head of each executive agency shall follow" are substituted for "agencies" for clarity and consistency in the revised title and with other titles of the Code.
In subsection (c)(2), before clause (A), the words "beginning in" are substituted for "succeeding" because of the restatement. The words "on whether the systems of the agency comply with subsection (b) of this section" are substituted for 31 App.:66a(d)(3)(A) to eliminate unnecessary words. In clause (B), the word "related" is omitted as surplus.
In subsection (c)(3)(A), the words "provision of" are omitted as surplus.
The Federal Managers&apos; Financial Integrity Act of 1982, referred to in subsec. (a)(2)(D), is Pub. L. 97–255, Sept. 8, 1982, 96 Stat. 814, which added subsec. (d) to section 66a of former Title 31, Money and Finance. Section 66a of former Title 31 was repealed by Pub. L. 97–258, §5(b), Sept. 13, 1982, 96 Stat. 1068, and reenacted by the first section thereof as this section. Provisions relating to reports on internal accounting and administrative control systems are restated in subsec. (d)(2) and (3) of this section.
The Federal Financial Management Improvement Act of 1996, referred to in subsec. (a)(2)(E), is Pub. L. 104–208, div. A, title I, §101(f) [title VIII], Sept. 30, 1996, 110 Stat. 3009–314, 3009–389, which is set out as a note under this section. Section 3(a) of the act probably means section 803(a) of the act, which contains requirements relating to financial management systems.
The date of the enactment of this subsection, referred to in subsec. (a)(4)(A), is the date of enactment of Pub. L. 101–576, which added subsec. (a) and was approved Nov. 15, 1990.
2014—Subsec. (a)(1). Pub. L. 113–101, which directed the insertion of "and make available on the website described under section 1122" after "appropriate committees of Congress" was executed by making the insertion after "appropriate committees of the Congress" to reflect the probable intent of Congress.
1996—Subsec. (a)(2)(E), (F). Pub. L. 104–208 added subpar. (E) and redesignated former subpar. (E) as (F).
1994—Subsec. (c)(1). Pub. L. 103–272, §4(f)(1)(J)(i), substituted "subsection (b)(3)" for "subsection (a)(3)" in introductory provisions.
Subsec. (d)(1), (2). Pub. L. 103–272, §4(f)(1)(J)(ii), substituted "subsection (c)" for "subsection (b)" wherever appearing.
1990—Pub. L. 101–576 substituted "and other financial management reports and plans" for "systems" in section catchline, added subsec. (a), and redesignated former subsecs. (a) to (f) as (b) to (g), respectively.
1983—Subsecs. (b), (c). Pub. L. 97–452 added subsecs. (b) and (c). Former subsecs. (b) and (c) were redesignated (d) and (e), respectively.
Subsecs. (d) to (f). Pub. L. 97–452 redesignated former subsecs. (b) to (d) as (d) to (f), respectively.
This section is popularly known as the "Federal Managers Financial Integrity Act".
For termination, effective May 15, 2000, of provisions of law requiring submittal to Congress of any annual, semiannual, or other regular periodic report listed in House Document No. 103–7 (in which the requirement to submit statements and reports to Congress under subsection (d)(3) of this section is listed on page 151), see section 3003 of Pub. L. 104–66, and section 1(a)(4) [div. A, §1402(1)] of Pub. L. 106–554, set out as notes under section 1113 of this title.
"SEC. 802. FINDINGS AND PURPOSES.
"(1) Much effort has been devoted to strengthening Federal internal accounting controls in the past. Although progress has been made in recent years, Federal accounting standards have not been uniformly implemented in financial management systems for agencies.
"(C) accurately report the financial condition of the Federal Government.
"(3) Current Federal accounting practices do not accurately report financial results of the Federal Government or the full costs of programs and activities. The continued use of these practices undermines the Government's ability to provide credible and reliable financial data and encourages already widespread Government waste, and will not assist in achieving a balanced budget.
"(4) Waste and inefficiency in the Federal Government undermine the confidence of the American people in the government and reduce the federal Government's ability to address vital public needs adequately.
"(5) To rebuild the accountability and credibility of the Federal Government, and restore public confidence in the Federal Government, agencies must incorporate accounting standards and reporting objectives established for the Federal Government into their financial management systems so that all the assets and liabilities, revenues, and expenditures or expenses, and the full costs of programs and activities of the Federal Government can be consistently and accurately recorded, monitored, and uniformly reported throughout the Federal Government.
"(6) Since its establishment in October 1990, the Federal Accounting Standards Advisory Board (hereinafter referred to as the &apos;FASAB&apos;) has made substantial progress toward developing and recommending a comprehensive set of accounting concepts and standards for the Federal Government. When the accounting concepts and standards developed by FASAB are incorporated into Federal financial management systems, agencies will be able to provide cost and financial information that will assist the Congress and financial managers to evaluate the cost and performance of Federal programs and activities, and will therefore provide important information that has been lacking, but is needed for improved decision making by financial managers and the Congress.
"(7) The development of financial management systems with the capacity to support these standards and concepts will, over the long term, improve Federal financial management.
"(7) increase the capability of agencies to monitor execution of the budget by more readily permitting reports that compare spending of resources to results of activities.
"SEC. 803. IMPLEMENTATION OF FEDERAL FINANCIAL MANAGEMENT IMPROVEMENTS.
"(a) In General.—Each agency shall implement and maintain financial management systems that comply substantially with Federal financial management systems requirements, applicable Federal accounting standards, and the United States Government Standard General Ledger at the transaction level.
"(1) In general.—Each audit required by section 3521(e) of title 31, United States Code, shall report whether the agency financial management systems comply with the requirements of subsection (a).
"(C) a statement with respect to the recommended remedial actions and the time frames to implement such actions.
"(B) any other information the Head of the agency considers relevant and appropriate.
"(B) the last day of the fiscal year following the year covered by such statement.
"(A) If the Head of an agency determines that the agency's financial management systems do not comply with the requirements of subsection (a), the head of the agency, in consultation with the Director, shall establish a remediation plan that shall include resources, remedies, and intermediate target dates necessary to bring the agency's financial management systems into substantial compliance.
"(B) If the determination of the head of the agency differs from the audit compliance findings required in subsection (b), the Director shall review such determinations and provide a report on the findings to the appropriate committees of the Congress.
"(C) designates an official of the agency who shall be responsible for bringing the agency's financial management systems into compliance with the requirements of subsection (a) by the date specified under subparagraph (B).
"(a) Reports by the Director.—No later than March 31 of each year, the Director shall submit a report to the Congress regarding implementation of this Act [title]. The Director may include the report in the financial management status report and the 5-year financial management plan submitted under section 3512(a)(1) of title 31, United States Code.
"(3) a statement of the remedial actions needed to comply.
"(2) the adequacy of applicable accounting standards for the Federal Government.
"(1) Agency.—The term &apos;agency&apos; means a department or agency of the United States Government as defined in section 901(b) of title 31, United States Code.
"(2) Director.—The term &apos;Director&apos; means the Director of the Office of Management and Budget.
"(3) Federal Accounting Standards.—The term &apos;Federal accounting standards&apos; means applicable accounting principles, standards, and requirements consistent with section 902(a)(3)(A) of title 31, United States Code.
"(4) Financial management systems.—The term &apos;financial management systems&apos; includes the financial systems and the financial portions of mixed systems necessary to support financial management, including automated and manual processes, procedures, controls, data, hardware, software, and support personnel dedicated to the operation and maintenance of system functions.
"(D) supporting the preparation of financial statements.
"(6) Mixed system.—The term &apos;mixed system&apos; means an information system that supports both financial and nonfinancial functions of the Federal Government or components thereof.
"This title shall take effect for the fiscal year ending September 30, 1997.
"SEC. 808. REVISION OF SHORT TITLES.
"(c) Any reference in any law, regulation, document, record, or other paper of the United States to the Federal Acquisition Reform Act of 1996 or to the Information Technology Management Reform Act of 1996 shall be considered to be a reference to the Clinger-Cohen Act of 1996 [see Short Title of 1996 Act note set out under section 101 of Title 41]."
2 So in original. Probably should be followed by "of". See References in Text note below.

References: §102
 §113
 §2
 §113
 §2
 §113
 §4
 §5
 §101
 §4
 §4
 §1402