Chief Financial Officers Act of 1990
PL 101-576 (H.R.5687), enacted 11/15/1990

104 STAT. 2838 
PUBLIC LAW 101-576—NOV. 15, 1990 
Public Law 101-576 
101st CJongress 
An Act 
Nov. 15, 1990 
To amend title 31, United States Code, to improve the general and financial manage-
[H.R. 5687] 
ment of the Federal Grovernment. 
Be it enacted by the Senate and House of Representatives of the 
Chief 
United States of America in Congress assembled, 
Financial 
rf?m ^"^ 
TITLE I—GENERAL PROVISIONS 
31 u s e 501 note. 
SEC. 101. SHORT TITLE. 
This Act may be cited as the "Chief Financial Officers Act of 
1990". 
31 u s e 501 note. 
SEC. 102. FINDINGS AND PURPOSES. 
(a) FINDINGS.—The Congress finds the following: 
(1) General management functions of the Office of Manage-
ment and Budget need to be significantly enhanced to improve 
the efficiency and effectiveness of the Federal Government. 
(2) Financial management functions of the Office of Manage-
ment and Budget need to be significantly enhanced to provide 
overall direction and leadership in the development of a 
modern Federed financial management structure and associated 
systems. 
(3) Billions of dollars are lost each year through fraud, waste, 
abuse, and mismanagement among the hundreds of programs in 
the Federal Government. 
(4) These losses could be significantly decreased by improved 
management, including improved central coordination of in-
ternal controls and financial accounting. 
(5) The Federal Government is in great need of fundamental 
reform in financial management requirements and practices as 
financial management systems are obsolete and inefficient, and 
do not provide complete, consistent, reliable, and timely 
information. 
(6) Current financial reporting practices of the Federal 
Government do not accurately disclose the current and probable 
future cost of operating and investment decisions, including the 
future need for cash or other resources, do not permit adequate 
comparison of actual costs among executive agencies, and do not 
provide the timely information required for efficient manage-
ment of programs. 
OJ) PURPOSES.—The purposes of this Act are the following: 
(1) Bring more effective general and financial management 
practices to the Federal Government through statutory provi-
sions which would establish in the Office of Management and 
Budget a Deputy Director for Management, establish an Office 
of Federal Financial Management headed by a Controller, and 
designate a Chief Financial Officer in each executive depart-
PUBLIC LAW 101-576—NOV. 15, 1990 
104 STAT. 2839 
ment and in each major executive agency in the Federal 
Government. 
(2) Provide for improvement, in each agency of the Federal 
Government, of systems of accounting, financial management, 
and internal controls to assure the issuance of reliable financial 
information and to deter fraud, waste, and abuse of Government 
resources. 
(3) Provide for the production of complete, reliable, timely, 
and consistent financial information for use by the executive 
branch of the Government and the Congress in the financing, 
management, and evaluation of Federal programs. 
TITLE II—ESTABLISHMENT OF CHIEF FINANCIAL 
OFFICERS 
SEC. 201. DEPUTY DIRECTOR FOR MANAGEMENT. 
Section 502 of title 31, United States Code, as amended by this 
Act, is amended— 
(1) by redesignating subsections (c), (d), and (e), as amended by 
this section, as subsections (d), (e), and (f); and 
(2) by inserting after subsection (b) the following: 
"(c) The Office has a Deputy Director for Management appointed 
by the President, by and with the advice and consent of the Senate. 
The Deputy Director for Management shall be the chief official 
responsible for financial management in the United States Govern-
ment.". 
SEC. 202. FUNCTIONS OF DEPUTY DIRECTOR FOR MANAGEMENT. 
(a) CLERICAL AMENDMENTS.—Sections 503 and 504 of title 31, 
United States Code, are redesignated in order as sections 505 and 
506, respectively. 
(b) FUNCTIONS OF DEPUTY DIRECTOR FOR MANAGEMENT.—Sub-
chapter I of chapter 5 of title 31, United States Code, is amended by 
inserting after section 502 the following: 
"§ 503. Functions of Deputy Director for Management 
"(a) Subject to the direction and approval of the Director, the 
Deputy Director for Management shall establish governmentwide 
financial 
management policies for executive agencies and shall 
perform the following financial management functions: 
"(1) Perform all functions of the Director, including all func-
tions delegated by the President to the Director, relating to 
financial management. 
"(2) Provide overall direction and leadership to the executive 
branch on financial management matters by establishing finan-
cial management policies and requirements, and by monitoring 
the establishment and operation of Federal Government finan-
cial management systems. 
"(3) Review agency budget requests for financial management 
systems and operations, and advise the Director on the re-
sources required to develop and effectively operate and main-
tain Federal Government financial management systems and to 
correct major deficiencies in such systems. 
"(4) Review and, where appropriate, recommend to the Direc-
tor changes to the budget and legislative proposals of agencies 
to ensure that they are in accordance with financial manage-
ment plans of the Office of Management and Budget. 
104 STAT. 2840 
PUBLIC LAW 101-576—NOV. 15, 1990 
"(5) Monitor the financial execution of the budget in relation 
to actual expenditures, including timely performance reports. 
"(6) Oversee, periodically review, and make recommendations 
to heads of agencies on the administrative structure of agencies 
with respect to their financial management activities. 
"(7) Develop and maintain qualification standards for agency 
Chief Financial Officers and for agency Deputy Chief Financial 
Officers appointed under sections 901 and 903, respectively. 
"(8) Provide advice to agency heads with respect to the selec-
tion of agency Chief Financial Officers and Deputy Chief Finan-
cial Officers. 
"(9) Provide advice to agencies regarding the qualifications, 
recruitment, performance, and retention of other financial 
management personnel. 
"(10) Assess the overall adequacy of the professional qualifica-
tions and capabilities of financial management staffs through-
out the Government and make recommendations on ways to 
correct problems which impair the capacity of those staffs. 
"(11) Settle differences that arise among agencies regarding 
the implementation of financial management policies. 
"(12) Chair the Chief Financial Officers Council established 
by section 302 of the Chief Financial Officers Act of 1990. 
"(13) Communicate with the financial officers of State and 
local governments, and foster the exchange with those officers 
of information concerning financial management standards, 
techniques, and processes. 
"(14) Issue such other policies and directives as may be nec-
essary to carry out this section, and perform any other function 
prescribed by the Director. 
"(b) Subject to the direction and approval of the Director, the 
Deputy Director for Maneigement shall establish general manage-
ment policies for executive agencies and perform the following 
general management functions: 
"(1) Coordinate and supervise the general management func-
tions of the Office of Management and Budget. 
"(2) Perform all functions of the Director, including all func-
tions delegated by the President to the Director, relating to— 
"(A) managerial systems, including the 
systematic 
measurement of performance; 
"(B) procurement policy; 
"(C) grant, 
cooperative 
agreement, 
and 
assistance 
management; 
"(D) information and statistical policy; 
"(E) property management; 
"(F) human resources management; 
"(G) regulatory affairs; and 
"(H) other mansigement functions, including organiza-
tional studies, long-range planning, program evaluation, 
productivity improvement, and experimentation and dem-
onstration programs. 
"(3) Provide complete, reliable, and timely information to the 
President, the Congress, and the public regarding the manage-
ment activities of the executive branch. 
"(4) Facilitate actions by the CJongress and the executive 
branch to improve the management of Federal Government 
operations and to remove impediments to effective administra-
tion. 
PUBLIC LAW 101-576—NOV. 15, 1990 
104 STAT. 2841 
"(5) Provide leadership in management innovation, through— 
"(A) experimentation, testing, and demonstration pro-
grams; and 
"(B) the adoption of modern management concepts and 
technologies. 
"(6) Work with State and local governments to improve and 
strengthen intergovernmental relations, and provide assistance 
to such governments with respect to intergovernmental pro-
grams and cooperative arrangements. 
"(7) Review and, where appropriate, recommend to the Direc-
tor changes to the budget and legislative proposals of agencies 
to ensure that they respond to program evaluations by, and are 
in accordance with general management plans of, the Office of 
Management and Budget. 
"(8) Provide advice to agencies on the qualification, recruit-
ment, performance, and retention of managerial personnel. 
"(9) perform any other functions prescribed by the Director.". 
SEC. 203. OFFICE OF FEDERAL FINANCIAL MANAGEMENT. 
(a) EsTABUSHMENT.—Subchapter I of chapter 5 of title 31, United 
States Code, as amended by this Act, is amended by inserting after 
section 503 (as added by section 202 of this Act) the following: 
"§ 504. OfHce of Federal Financial Management 
"(a) There is established in the Office of Management and Budget 
an office to be known as the 'Office of Federal Financial Manage-
ment'. The Office of Federal Financial Management, under the 
direction and control of the Deputy Director for Management of the 
Office of Management and Budget, shall carry out the financial 
management functions listed in section 503(a) of this title. 
"(b) There shall be at the head of the Office of Federal Financial 
Management a Controller, who shall be appointed by the President, 
by and with the advice and consent of the Senate. The Controller 
shall be appointed from among individuals who possess— 
"(1) demonstrated ability and practical experience in account-
ing, financial management, and financial systems; and 
"(2) extensive practical experience in financial management 
in large governmental or business entities. 
"(c) The Controller of the Office of Federal Financial Management 
shall be the deputy and principal advisor to the Deputy Director for 
Management in the performance by the Deputy Director for 
Management of functions described in section 503(a).". 
(b) STATEMENT OF APPROPRIATIONS IN BUDGET.—Section 1105(a) of 
title 31, United States Code, is amended by adding at the end the 
following: 
"(28) a separate statement of the amount of appropriations 
requested for the Office of Federal Financial Management.". 
(c) CLERICAL AMENDMENT.—The table of contents at the begin-
ning of chapter 5 of title 31, United States Code, is amended by 
striking the items relating to sections 503 and 504 and inserting the 
following: 
"503. Functions of Deputy Director for Management. 
"504. Office of Federal Financial Management. 
"505. Office of Information and Regulatory Affairs. 
"506. Office of Federal Procurement Policy.". 
: i 
104 STAT. 2842 
PUBLIC LAW 101-576—NOV. 15, 1990 
31 u s e 501 note. 
SEC. 204. DUTIES AND FUNCTIONS OF THE DEPARTMENT OF THE TREAS-
URY. 
Nothing in this Act shall be construed to interfere with the 
exercise of the functions, duties, and responsibilities of the Depart-
ment of the Treasury, as in effect immediately before the enactment 
of this Act. 
SEC. 205. AGENCY CHIEF FINANCIAL OFFICERS. 
(a) IN GENERAL.—Subtitle I of title 31, United States Code, is 
amended by adding at the end the following new chapter: 
"CHAPTER 9—AGENCY CHIEF FINANCIAL OFFICERS 
"Sec. 
"901. Establishment of agency Chief Financial Officers. 
"902. Authority and functions of agency Chief Fintmcial Officers. 
"903. Establishment of agency Deputy Chief Financial Officers. 
"§ 901. Establishment of agency Chief Financial Officers 
"(a) There shall be within each agency described in subsection (b) 
an agency Chief Financial Officer. Each agency Chief Financial 
Officer shall— 
"(1) for those agencies described in subsection (bXD— 
"(A) be appointed by the President, by and with the 
advice and consent of the Senate; or 
"(B) be designated by the President, in consultation with 
the head of the agency, from among officials of the agency 
who are required by law to be so appointed; 
"(2) for those agencies described in subsection Ot)X2)— 
"(A) be appointed by the head of the g^ency; 
"(B) be in the competitive service or the senior executive 
service; and 
"(C) be career appointees; and 
"(3) be appointed or designated, as applicable, from among 
individuals who possess demonstrated ability in general 
maneigement of, and knowledge of and extensive practical 
experience in financial management practices in large govern-
mental or business entities. 
"(bXD The agencies referred to in subsection (aXD are the 
following: 
"(A) The Department of Agriculture. 
"(B) The Department of Commerce. 
"(C) The Department of Defense. 
"(D) The Department of Education. 
"(E) The Department of Energy. 
"(F) The Department of Health and Human Services. 
"(G) The Department of Housing and Urban Development. 
"(H) The Department of the Interior. 
"(I) The Department of Justice. 
"(J) The Department of Labor. 
"(K) The Department of State. 
"(L) The Department of Transportation. 
"(M) The Department of the Treasury. 
"(N) The Department of Veterans Affairs. 
"(O) The Environmental Protection Agency. 
"(P) The National Aeronautics and Space Administration. 
"(2) The agencies referred to in subsection (aX2) are the following: 
PUBLIC LAW 101-576—NOV. 15, 1990 
104 STAT. 2843 
"(A) The Agency for International Development. 
"(B) The Federal Emergency Management Agency. 
"(C) The General Services Administration. 
"(D) The National Science Foundation. 
"(E) The Nuclear Regulatory Commission. 
"(F) The Office of Personnel Management. 
"(G) The Small Business Administration. 
'§ 902. Authority and functions of agency Chief Financial Offlcers 
"(a) An agency Chief Financial Officer shall— 
"(1) report directly to the head of the agency regarding finan-
cial management matters; 
"(2) oversee all financial management activities relating to 
the programs and operations of the agency; 
"(3) develop and maintain an integrated agency accounting 
and financial management system, including financial report-
ing and internal controls, which— 
"(A) complies with applicable accounting principles, 
standards, and requirements, and internal control stand-
ards; 
"(B) complies with such policies and requirements as may 
be prescribed by the Director of the Office of Management 
and Budget; 
"(C) complies with any other requirements applicable to 
such systems; and 
"(D) provides for— 
"(i) complete, 
reliable, 
consistent, 
and 
timely 
information which is prepared on a uniform basis and 
which is responsive to the financial information needs 
of agency management; 
"(ii) the development and reporting of cost informa-
tion; 
"(iii) the integration of accounting and budgeting 
information; and 
"(iv) the systematic measurement of performance; 
"(4) make recommendations to the head of the agency regard-
ing the selection of the Deputy Chief Financial Officer of the 
agency; 
"(5) direct, manage, and provide policy guidance and over-
sight of agency financial management personnel, activities, and 
operations, including— 
"(A) the preparation and annual revision of an agency 
plan to— 
"(i) implement the 5-year financial management plan 
prepared by the Director of the Office of Management 
and Budget under section 3512(a)(3) of this title; and 
"(ii) comply with the requirements established under 
sections 3515 and subsections (e) and (f) of section 3521 
of this title; 
"(B) the development of agency financial management 
budgets; 
"(C) the recruitment, selection, and training of personnel 
to carry out agency financial management functions; 
"(D) the approval and management of agency financial 
management systems design or enhancement projects; 
"(E) the implementation of agency asset management 
systems, including systems for cash management, credit 
104 STAT. 2844 
PUBLIC LAW 101-576—NOV. 15, 1990 
management, debt collection, and property and inventory 
management and control; 
Reports. 
"(6) prepare and transmit, by not later than 60 days after the 
submission of the audit report required by section 3521(f) of this 
title, an annual report to the agency head and the Director of 
the Office of Management and Budget, which shall include— 
"(A) a description and analysis of the status of financial 
management of the agency; 
"(B) the annual financial statements prepared under sec-
tion 3515 of this title; 
"(C) the audit report transmitted to the head of the 
agency under section 3521(f) of this title; 
"(D) a summary of the reports on internal accounting and 
administrative control systems submitted to the President 
and the Congress under the amendments made by the 
Federal Managers' Financial Integrity Act of 1982 (Public 
Law 97-255); and 
"(E) other information the head of the agency considers 
appropriate to fully inform the President and the Congress 
concerning the financial management of the agency; 
Reports. 
"(7) monitor the financial execution of the budget of the 
agency in relation to actual expenditures, and prepare and 
submit to the head of the agency timely performance reports; 
and 
"(8) review, on a biennial basis, the fees, royalties, rents, and 
other charges imposed by the agency for services and things of 
value it provides, and make recommendations on revising those 
charges to reflect costs incurred by it in providing those services 
and things of value. 
"(bXD In addition to the authority otherwise provided by this 
section, each agency Chief Financial Officer— 
"(A) subject to paragraph (2), shall have access to all records, 
reports, audits, reviews, documents, papers, recommendations, 
or other material which are the property of the agency or which 
are available to the agency, and which relate to programs and 
operations with respect to which that agency Chief Financial 
Officer has responsibilities under this section; 
"(B) may request such information or assistance as may be 
necessary for carrying out the duties and responsibilities pro-
vided by this section from any Federal, State, or local govern-
mental entity; and 
"(C) to the extent and in such amounts as may be provided in 
advance by appropriations Acts, may— 
"(i) enter into contracts and other arrangements with 
public agencies and with private persons for the prepara-
tion of financial statements, studies, analyses, and other 
services; and 
"(ii) make such payments as may be necessary to carry 
out the provisions of this section. 
"(2) Except as provided in paragraph (IXB), this subsection does 
not provide to an agency Chief Financial Officer any access greater 
than permitted under any other law to records, reports, audits, 
reviews, documents, papers, recommendations, or other material of 
any Office of Inspector General established under the Inspector 
General Act of 1978 (5 U.S.C. App.). 
PUBLIC LAW 101-576—NOV. 15, 1990 
104 STAT. 2845 
"§ 903. Establishment of agency Deputy Chief Financial OfHcers 
"(a) There shall be within each agency described in section 901(b) 
an agency Deputy Chief Financial Officer, who shall report directly 
to the agency Chief Financial Officer on financial management 
matters. The position of agency Deputy Chief Financial Officer shall 
be a career reserved position in the Senior Executive Service. 
"(b) Consistent with qualification standards developed by, and in 
consultation with, the agency Chief Financial Officer and the 
Director of the Office of Management and Budget, the head of each 
agency shall appoint as Deputy Chief Financial Officer an individ-
ual with demonstrated ability and experience in accounting, budget 
execution, financial and management analysis, and systems develop-
ment, and not less than 6 years practical experience in financial 
management at large governmental entities.". 
(b) CLERICAL AMENDMENT.—The table of chapters at the beginning 
of subtitle I of title 31, United States Code, is amended by adding at 
the end the following: 
"9. Agency Chief Financial Officers 
901.". 
(c) CHIEF FINANCIAL OFFICERS OF DEPARTMENT OF VETERANS AF- 31 use 90i note. 
FAIRS AND DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT.— 
(1) DESIGNATION.—The Secretary of Veterans Affairs and the 
Secretary of Housing and Urban Development may each des-
ignate as the agency Chief Financial Officer of that department 
for purposes of section 901 of title 31, United States Code, as 
amended by this section, the officer designated, respectively, 
under section 4(c) of the Department of Veterans Affairs Act (38 
U.S.C. 201 note) and section 4(e) of the Department of Housing 
and Urban Development Act (42 U.S.C. 3533(e)), as in effect 
before the effective date of this Act. 
(2) CONFORMING AMENDMENT.—Section 4(c) of the Department 
of Veterans Affairs Act (38 U.S.C. 201 note) and section 4(e) of 
the Department of Housing and Urban Development Act (42 
U.S.C. 3533(e)), as added by section 121 of Public Law 101-235, 
are repealed. 
SEC. 206. TRANSFER OF FUNCTIONS AND PERSONNEL OF AGENCY CHIEF 
31 USC 901 note. 
FINANCIAL OFFICERS. 
(a) AGENCY REVIEWS OF FINANCIAL MANAGEMENT ACTIVITIES.— 
Not later than 120 days after the date of the enactment of this Act, 
the Director of the Office of Management and Budget shall require 
each agency listed in subsection (b) of section 901 of title 31, United 
States Code, as amended by this Act, to conduct a review of its 
financial management activities for the purpose of consolidating its 
accounting, budgeting, and other financial management activities 
under the agency Chief Financial Officer appointed under subsec-
tion (a) of that section for the agency. 
(b) REORGANIZATION PROPOSAL.—Not later than 120 days after the 
issuance of requirements under subsection (a) and subject to all laws 
vesting functions in particular officers and employees of the United 
States, the head of each agency shall submit to the Director of the 
Office of Management and Budget a proposal for reorganizing the 
agency for the purposes of this Act. Such proposal shall include— 
(1) a description of all functions, powers, duties, personnel, 
property, or records which the agency Chief Financial Officer is 
proposed to have authority over, including those relating to 
104 STAT. 2846 
PUBLIC LAW 101-576—NOV. 15, 1990 
functions that are not related to financial management activi-
ties; and 
(2) a detailed outline of the administrative structure of the 
office of the agency Chief Financial Officer, including a descrip-
tion of the responsibility and authority of financial manage-
ment personnel and resources in agencies or other subdivisions 
as appropriate to that agency. 
(c) REVIEW AND APPROVAL OF PROPOSAL.—Not later than 60 days 
after receiving a proposal from the head of an agency under subsec-
tion (b), the Director of the Office of Management and Budget shall 
approve or disapprove the proposal and notify the head of the 
agency of that approval or disapproval. The Director shall approve 
each proposal which establishes an agency Chief Financial Officer in 
conformance with section 901 of title 31, United States Code, as 
added by this Act, and which establishes a financial management 
structure reasonably tailored to the functions of the agency. Upon 
approving or disapproving a proposal of an agency under this sec-
tion, the Director shall transmit to the head of the agency a written 
notice of that approval or disapproval. 
(d) IMPLEMENTATION OF PROPOSAL.—Upon receiving written notice 
of approval of a proposal under this section from the Director of the 
Office of Management and Budget, the head of an agency shall 
implement that proposal. 
SEC. 207. COMPENSATION. 
(a) COMPENSATION, LEVEL II.—Section 5313 of title 5, United States 
Code, is amended by adding at the end the following: 
"Deputy Director for Management, Office of Management 
and Budget.". 
(b) COMPENSATION, LEVEL III-Section 5314 of title 5, United 
States Code, is amended by adding at the end the following: 
"Controller, Office of Federal Financial Management, Office 
of Management and Budget.". 
(c) COMPENSATION, LEVEL IV.—Section 5315 of title 5, United 
States Code, is amended by adding at the end the following: 
"Chief Financial Officer, Department of Agriculture. 
"Chief Financial Officer, Department of Commerce. 
"Chief Financial Officer, Department of Defense. 
"Chief Financial Officer, Department of Education. 
"Chief Financial Officer, Department of Energy. 
"Chief Financial Officer, Department of Health and Human 
Services. 
"Chief Financial Officer, Department of Housing and Urban 
Development. 
"Chief Financial Officer, Department of the Interior. 
"Chief Financial Officer, Department of Justice. 
"Chief Financial Officer, Department of Labor. 
"Chief Financial Officer, Department of State. 
"Chief Financial Officer, Department of Transportation. 
"Chief Financial Officer, Department of the Treasury. 
"Chief Financial Officer, Department of Veterans Affairs. 
"Chief Financial Officer, Environmental Protection Agency. 
"Chief Financial Officer, National Aeronautics and Space 
Administration.". 
PUBLIC LAW 101-576—NOV. 15, 1990 
104 STAT. 2847 
TITLE III—ENHANCEMENT OF FEDERAL 
FINANCIAL MANAGEMENT ACTIVITIES 
SEC. 
3
0
1
. 
FINANCIAL 
MANAGEMENT STATUS 
REPORT; 5-YEAR 
PLAN 
OF 
DIRECTOR 
OF 
OFFICE 
OF 
MANAGEMENT 
AND 
BUDGET. 
(a) IN GENERAL.—Section 3512 of title 31, United States Code, is 
amended by striking the heading thereof, redesignating subsections 
(a) through (f) in order as subsections (b) through (g), and by insert-
ing before such subsection (b), as so redesignated, the following: 
"§ 3512. Executive agency accounting and other flnancial manage-
ment reports and plans 
"(aXD The Director of the Office of Management and Budget shall 
prepare and submit to the appropriate committees of the Congress a 
financial management status report and a governmentwide 5-year 
financial management plan. 
"(2) A financial management status report under this subsection 
shall include— 
"(A) a description and analysis of the status of financial 
management in the executive branch; 
"(B) a summary of the most recently completed financial 
statements— 
"(i) of Federal agencies under section 3515 of this title; 
and 
"(ii) of Government corporations; 
"(C) a summary of the most recently completed financial 
statement audits and reports— 
"(i) of Federal agencies under section 3521 (e) and (f) of 
this title; and 
"(ii) of Government corporations; 
"(D) a summary of reports on internal accounting and 
administrative control systems submitted to the President and 
the Congress under the amendments made by the Federal 
Managers' Financial Integrity Act of 1982 (Public Law 97-255); 
and 
"(E) any other information the Director considers appropriate 
to fully inform the (Dongress regarding the finsmcial manage-
ment of the Federal Government. 
"(3XA) 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. 
"(B) Each governmentwide 5-year financial management plan 
prepared under this subsection shall— 
"(i) describe the existing financial management structure and 
any changes needed to establish an integrated 
financial 
management system; 
"(ii) be consistent with applicable accounting principles, 
standards, and requirements; 
"(iii) provide a strategy for developing and integrating 
individual agency accounting, financial information, and other 
financial management systems to ensure adequacy, consistency, 
and timeliness of financial information; 
104 STAT. 2848 
PUBLIC LAW 101-576—NOV. 15, 1990 
"(iv) identify and make proposals to eliminate duplicative and 
unnecessary systems, including encouraging agencies to share 
systems which have sufficient capacity to perform the functions 
needed; 
"(v) identify projects to bring existing systems into compli-
ance with the applicable standards and requirements; 
"(vi) contain milestones for equipment acquisitions and other 
actions necessary to implement the 5-year plan consistent with 
the requirements of this section; 
"(vii) identify financial management personnel needs and 
actions to ensure those needs are met; 
"(viii) include a plan for ensaring the annual audit of finan-
cial statements of executive agencies pursuant to section 3521(h) 
of this title; and 
"(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 im-
plementing 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 para-
graph (3)(B)(viii), progress made by executive agencies in implement-
ing 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.". 
(b) CLERICAL AMENDMENT.—The table of contents at the beginning 
of chapter 35 of title 31, United States Code, is amended by striking 
the item relating to section 3512 and inserting the following: 
"3512. Executive agency accounting and other financial management reports and 
plans.". 
31 u s e 901 note. 
SEC. 302. CHIEF FINANCIAL OFFICERS COUNCIL. 
(a) ESTABLISHMENT.—There is established a Chief Financial Offi-
cers Council, consisting o
f
— 
(1) the Deputy Director for Management of the Office of 
Management and Budget, who shall act as chairperson of the 
council; 
(2) the Controller of the Office of Federal Financial Manage-
ment of the Office of Management and Budget; 
(3) the Fiscal Assistant Secretary of Treasury; and 
PUBLIC LAW 101-576—NOV. 15, 1990 
104 STAT. 2849 
(4) each of the agency Chief Financial Officers appointed 
under section 901 of title 31, United States Code, as amended by 
this Act. 
(b) FUNCTIONS.—The Chief Financial Officers Council shall meet 
periodically to advise and coordinate the activities of the agencies of 
its members on such matters as consolidation and modernization of 
financial systems, improved quality of financial information, finan-
cial data and information standards, internal controls, legislation 
affecting financial operations and organizations, and any other 
financial management matter. 
SEC. 303. FINANCIAL STATEMENTS OF AGENCIES. 
(a) PREPARATION OF FINANCIAL STATEMENTS.— 
(1) IN GENERAL.—Subchapter II of chapter 35 of title 31, 
United States Code, is amended by adding at the end the 
following: 
"§ 3515. Financial statements of agencies 
"(a) Not later than March 31 of 1992 and each year thereafter, the 
head of each executive agency identified in section 901(b) of this title 
shall prepare and submit to the Director of the Office of Manage-
ment and Budget a financial statement for the preceding fiscal year, 
covering— 
"(1) each revolving fund and trust fund of the agency; and 
"(2) to the extent practicable, the accounts of each office, 
bureau, and activity of the agency which performed substantial 
commercial functions during the preceding fiscal year. 
"Ot)) Each financial statement of an executive agency under this 
section shall reflect— 
"(1) the overall financial position of the revolving funds, trust 
funds, offices, bureaus, and activities covered by the statement, 
including assets and liabilities thereof; 
"(2) results of operations of those revolving funds, trust funds, 
offices, bureaus, and activities; 
"(3) cash flows or changes in flnancial position of those revolv-
ing funds, trust funds, offices, bureaus, and activities; and 
"(4) a reconciliation to budget reports of the executive agency 
for those revolving fun<fe, trust funds, offices, bureaus, and 
activities. 
"(c) The Director of the Office of Management and Budget shall 
prescribe the form and content of the financial statements of execu-
tive agencies under this section, consistent with applicable account-
ing principles, standards, and requirements. 
(d) For purposes of this section, the term 'commercial functions' 
includes bujdng and leasing of real estate, providing insurance, 
making loans and loan guarantees, and other credit programs and 
any activity involving the provision of a service or thing of value for 
which a fee, royalty, rent, or other charge is imposed by an agency 
for services and things of value it provides. 
"(e) Not later than March 31 of each year, the head of each 
executive agency designated by the President may prepare and 
submit to the Director of the C)ffice of Management and Budget a 
financial statement for the preceding fiscal year, covering accounts 
of offices, bureaus, and activities of the agency in addition to those 
described in subsection (a).". 
(2) EFFECTIVE DATE OF SUBSECTION.—Subsection (e) of section 
31 use 3515 
3515 of title 31, United States Code, as added by paragraph (1), "ote. 
104 STAT. 2850 
PUBLIC LAW 101-576—NOV. 15, 1990 
shall take effect on the date on which a resolution described in 
subsection (b)(1) of this section is passed by the Congress and 
approved by the President. 
31 use 3515 
(3) WAIVER OF REQUIREMENT.—The Director of the Office of 
note- 
Management and Budget may, for fiscal year 1991, waive the 
application of section 3515(a) of title 31, United States Code, as 
amended by this subsection, with respect to any revolving fund, 
trust fund, or account of an executive agency. 
31 use 3515 
(b) RESOLUTION APPROVING DESIGNATION OF AGENCIES.— 
^°^- 
(1) RESOLUTION DESCRIBED.—A resolution referred to in subsec-
tion (aX2) is a joint resolution the matter after the resolving 
clause of which is as follows: "That the Congress approves the 
executive agencies designated by the President pursuant to 
section 3515(e) of title 31, United States Code.". 
(2) INTRODUCTION OF RESOLUTION.—No later than the first day 
of session following the day on which the President submits to 
the Congress a designation of executive agencies authorized to 
submit financial statements under section 3515(e) of title 31, 
United States Code, as added by subsection (a), a resolution as 
described in paragraph (1) shall be introduced (by request) in 
the House by the chairman of the Committee on Government 
Operations of the House of Representatives, or by a Member or 
Members of the House designated by such chairman; and shall 
be introduced (by request) in the Senate by the chairman of the 
Committee on Governmental Affairs of the Senate, or by a 
Member or Members of the Senate designated by such chair-
man. 
(3) REFERRAL.—A resolution described in paragraph (1), shall 
be referred to the Committee on Governmental Affairs of the 
Senate and the Committee on Government Operations of the 
House (and all resolutions with respect to the same designation 
of executive agencies shall be referred to the same committee) 
by the President of the Senate or the Speaker of the House of 
Representatives, as the case may be. The committee shall make 
its recommendations to the House of Representatives or the 
Senate, respectively, within 60 calendar days of continuous 
session of the Congress following the date of such resolution's 
introduction. 
(4) DISCHARGE OF COMMITTEE.—If the committee to which is 
referred a resolution introduced pursuant to paragraph (2) (or, 
in the absence of such a resolution, the first resolution intro-
duced with respect to the same designation of executive agen-
cies) has not reported such resolution or identical resolution at 
the end of 60 calendar days of continuous session of the Con-
gress after its introduction, such committee shall be deemed to 
be discharged from further consideration of such resolution and 
such resolution shall be placed on the appropriate calendar of 
the House involved. 
(5) PROCEDURE AFTER REPORT OR DISCHARGE OF COMMITTEE; 
V
O
T
E ON FINAL PASSAGE.—(A) When the committee has reported, 
or has been deemed to be discharged (under paragraph (4)) from 
further consideration of, a resolution described in paragraph (1), 
it is at any time thereafter in order (even though a previous 
motion to the same effect has been disagreed to) for any 
Member of the respective House to move to proceed to the 
consideration of the resolution. The motion is highly privileged 
and is not debatable. The motion shall not be subject to amend-
PUBLIC LAW 101-576—NOV. 15, 1990 
104 STAT. 2851 
ment, or to a motion to postpone, or a motion to proceed to the 
consideration of other business. A motion to reconsider the vote 
by which the motion is agreed to or disagreed to shall not be in 
order. If a motion to proceed to the consideration of the resolu-
tion is agreed to, the resolution shall remain the unfinished 
business of the respective House until disposed of. 
(B) Debate on the resolution, gmd on all debatable motions 
and appeals in connection therewith, shall be limited to not 
more than 10 hours, which shall be divided equally between 
individuals favoring and individuals opposing the resolution. A 
motion further to limit debate is in order and not debatable. An 
amendment to, or a motion to postpone, or a motion to proceed 
to the consideration of other business, or a motion to recommit 
the resolution is not in order. A motion to reconsider the vote by 
which the resolution is passed or rejected shall not be in order. 
(C) Immediately following the conclusion of the debate on the 
resolution and a single quorum call at the conclusion of the 
debate if requested in accordance with the rules of the appro-
priate House, the vote on final passage of the resolution shall 
occur. 
(D) Appeals from the decisions of the Chair relating to the 
application of the rules of the Senate or the House of Represent-
atives, as the case may be, to the procedure relating to a 
resolution described in paragraph (1), shall be decided without 
debate. 
(E) If, prior to the passage by one House of a resolution of that 
House, that House receives a resolution with respect to the 
same designation of executive agencies from the other House, 
then— 
(i) the procedure in that House shall be the same as if no 
resolution had been received from the other House; but 
(ii) the vote on final passage shall be on the resolution of 
the other House. 
(F) It shall not be in order in either the House of Representa-
tives or the Senate to consider a resolution described in para-
graph (1), or to consider any conference report on such a 
resolution, unless the Director of the Office of Management and 
Budget submits to the Congress a report under subsection (e). 
(c) REPORT ON SUBSTANTIAL COMMERCIAL FUNCTIONS.—Not later 
3i use 3515 
than 180 days after the date of the enactment of this Act, the 
"°^' 
Director of the Office of Management and Budget shall determine 
and report to the Congress on which executive agencies or parts 
thereof perform substantial commercial functions for which finan-
cial statements can be prepared practicably under section 3515 of 
title 31, United States Code, as added by this section. 
(d) PILOT PROJECT.—(1) Not later than March 31 of each of 1991, 31 USC 3515 
1992, and 1993, the head of the Departments of Agriculture, Labor, "ote-
and Veterans Affairs, the General Services Administration, and the 
Social Security Administration shall each prepare and submit to the 
Director of the Office of Management and Budget financial state-
ments for the preceding fiscal year for the accounts of all of the 
offices, bureaus, and activities of that department or administration. 
(2) Not later than March 31 of each of 1992 and 1993, the head of 
the Departments of Housing and Urban Development and the Army 
shall prepare and submit to the Director of the Office of Manage-
ment and Budget financial statements for the preceding fiscal year 
104 STAT. 2852 
PUBLIC LAW 101-576—NOV. 15, 1990 
for the accounts of all of the offices, bureaus, and activities of that 
department. 
(3) Not later than March 31, 1993, the head of the Department of 
the Air Force, the Internal Revenue Service, and the United States 
Customs Service, shall each prepare and submit to the Director of 
the Office of Management and Budget financial statements for the 
preceding fiscal year for the accounts of all of the offices, bureaus, 
and activities of that department or service. 
(4) Each financial statement prepared under this subsection shall 
be audited in accordance with section 3521 (e), (f), (g), and (h) of title 
31, United States Code. 
31 use 3515 
(e) REPORT ON INITIAL FINANCIAL STATEMENTS.—Not later than 
"°*®- 
June 30,1993, the Director of the Office of Management and Budget 
shall report to the Congress on the financial statements prepared for 
fiscal years 1990, 1991, and 1992 under subsection (a) of section 3515 
of title 31, United States Code (as added by subsection (a) of this 
section) and under subsection (d) of this section. The report shall 
include analysis of^ 
(1) the accuracy of the data included in the financial state-
ments; 
(2) the difficulties each department and agency encountered 
in preparing the data included in the financial statements; 
(3) the benefits derived from the preparation of the financial 
statements; and 
(4) the cost associated with preparing and auditing the finan-
cial statements, including a description of any activities that 
were foregone as a result of that preparation and auditing. 
(f) CLERICAL AMENDMENT.—The table of sections at the beginning 
of chapter 35 of title 31, United States Code, is amended by inserting 
after the item relating to section 3514 the following: 
"3515. Financial statements of agencies.". 
SEC. 304. FINANCIAL AUDITS OF AGENCIES. 
(a) IN GENERAL.—Section 3521 of title 31, United States Code, is 
amended by adding at the end the following new subsections: 
"(e) Each financial statement prepared under section 3515 by an 
agency shall be audited in accordance with applicable generally 
accepted government auditing standards— 
"(1) in the case of an agency having an Inspector General 
appointed under the Inspector General Act of 1978 (5 U.S.C. 
App.), by the Inspector General or by an independent external 
auditor, as determined by the Inspector General of the agency; 
and 
"(2) in any other case, by an independent external auditor, as 
determined by the head of the agency. 
Reports. 
"(f) Not later than June 30 following the fiscal year for which a 
financial statement is submitted under section 3515 of this title by 
an agency, the person who audits the statement for purpose of 
subsection (e) shall submit a report on the audit to the head of the 
agency. A report under this subsection shall be prepared in accord-
ance with generally accepted government auditing standards. 
"(g) The Comptroller General of the United States— 
"(1) may review any audit of a financial statement conducted 
under this subsection by an Inspector General or an external 
auditor; 
PUBLIC LAW 101-576—NOV. 15, 1990 
104 STAT. 2853 
31 use 3521 
note. 
"(2) shall report to the Congress, the Director of the Office of Reports. 
Management and Budget, and the head of the agency which 
prepared the statement, regarding the results of the review and 
make any recommendation the ComptrpUer General considers 
appropriate; and 
"(3) may audit a financial statement prepared under section 
3515 of this title at the discretion of the Comptroller General or 
at the request of a committee of the Congress. 
An audit the Comptroller General performs under this subsection 
shall be in lieu of the audit otherwise required by subsection (e) of 
this section. Prior to performing such audit, the Comptroller Gen-
eral shall consult with the Inspector General of the agency which 
prepared the statement. 
"(h) Each financial statement prepared by an executive agency for 
a fiscal year after fiscal year 1991 shall be audited in accordance 
with this section and the plan required by section 3512(a)(3)(B)(viii) 
of this title.". 
(b) WAIVER OF REQUIREMENTS.—The Director of the Office of 
Management and Budget may waive application of subsections (e) 
and (f) of section 3521 of title 31, United States Code, as amended by 
this section, to a financial statement submitted by an Eigency for 
fiscal years 1990 and 1991. 
SEC. 305. FINANCIAL AUDITS OF GOVERNMENT CORPORATIONS. 
Section 9105 of title 31, United States Code, is amended to read as 
follows: 
"§ 9105. Audits 
"(a)(1) The financial statements of Government corporations shall 
be audited by the Inspector General of the corporation appointed 
under the Inspector General Act of 1978 (5 U.S.C. App.) or by an 
independent external auditor, as determined by the Inspector 
General or, if there is no Inspector General, by the head of the 
corporation. 
"(2) Audits under this section shall be conducted in accordance 
with applicable generally accepted government auditing standards. 
"(3) Upon completion of the audit required by this subsection, the Reports, 
person who audits the statement shall submit a report on the audit 
to the head of the Government corporation, to the Chairman of the 
Committee on Government Operations of the House of Representa-
tives, and to the Chairman of the Committee on Governmental 
Affairs of the Senate. 
"(4) The Comptroller General of the United States— 
"(A) may review any audit of a financial statement conducted 
under this subsection by an Inspector General or an external 
auditor; 
"(B) shall report to the Congress, the Director of the Office of Reports. 
Management and Budget, and the head of the Government 
corporation which prepared the statement, regarding the re-
sults of the review and make any recommendation the 
Comptroller General of the United States considers appropriate; 
and 
"(C) may audit a financial statement of a Government cor-
poration at the discretion of the Comptroller General or at the 
request of a committee of the Congress. 
An audit the Comptroller General performs under this paragraph 
shall be in lieu of the audit otherwise required by paragraph (1) of 
104 STAT. 2854 
PUBLIC LAW 101-576—NOV. 15, 1990 
this subsection. Prior to performing such audit, the Comptroller 
General shall consult with the Inspector General of the agency 
which prepared the statement. 
"(5) A Government corporation shall reimburse the Comptroller 
General of the United States for the full cost of any audit conducted 
by the Comptroller General under this subsection, as determined by 
the Comptroller General. All reimbursements received under this 
paragraph by the Comptroller General of the United States shall be 
deposited in the Treasury as miscellaneous receipts. 
"(b) Upon request of the Comptroller General of the United 
States, a Government corporation shall provide to the Comptroller 
General of the United States all books, accounts, financial records, 
reports, files, workpapers, and property belonging to or in use by the 
Government corporation and its auditor that the Comptroller Gen-
eral of the United States considers necessary to the performance of 
any audit or review under this section. 
"(c) Activities of the Comptroller General of the United States 
under this section are in lieu of any audit of the financial trans-
actions of a Government corporation that the Comptroller General 
is required to make under any other law.". 
SEC. 306. MANAGEMENT REPORTS OF GOVERNMENT CORPORATIONS. 
(a) IN GENERAL.—Section 9106 of title 31, United States Code, is 
amended to read as follows: 
"§ 9106. Management reports 
"(a)(1) A Government corporation shall submit an annual manage-
ment report to the Congress not later than 180 days after the end of 
the Government corporation's fiscal year. 
"(2) A management report under this subsection shall include— 
"(A) a statement of financial position; 
"(B) a statement of operations; 
"(C) a statement of cash flows; 
"(D) a reconciliation to the budget report of the Government 
corporation, if applicable; 
"(E) a statement on internal accounting and administrative 
control systems by the head of the management of the corpora-
tion, consistent with the requirements for agency statements on 
internal accounting and administrative control systems under 
the amendments made by the Federal Managers' Financial 
Integrity Act of 1982 (Public Law 97-255); 
"(F) the report resulting from an audit of the financial state-
ments of the corporation conducted under section 9105 of this 
title; and 
"(G) any other comments and information necessary to 
inform the Congress about the operations and financial condi-
tion of the corporation. 
"(b) A Government corporation shall provide the President, the 
Director of the Office of Management and Budget, and the 
Comptroller General of the United States a copy of the management 
report when it is submitted to Congress.". 
(b) CLERICAL AMENDMENT.—The table of sections for chapter 91 of 
title 31, United States Code, is amended by striking the item relat-
ing to section 9106 and inserting the following: 
"9106. Management reports.". 
PUBLIC LAW 101-576—NOV. 15, 1990 
104 STAT. 2855 
SEC. 307. ADOPTION OF CAPITAL ACCOUNTING STANDARDS. 
31 USC 3511 
No capital accounting standard or principle, including any human 
capital standard or principle, shall be adopted for use in an execu-
tive department or gigency until such standard has been reported to 
the Congress and a period of 45 days of continuous session of the 
Congress has expired. 
Approved November 15, 1990. 
LEGISLATIVE HISTORY—H.R. 5687: 
HOUSE REPORTS: No. 101-818, Pt. 1 (Comm. on Government Operations). 
CONGRESSIONAL RECORD, Vol. 136 (1990): 
Oct. 15, considered and passed House. 
Oct. 26, considered and passed Senate, amended. 
Oct. 27, House concurred in Senate amendments. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 26 (1990): 
Nov. 15, Presidential statement.