Collapse to view only § 3516. Reports consolidation
- § 3511. Prescribing accounting requirements and developing accounting systems
- § 3512. Executive agency accounting and other financial management reports and plans
- § 3513. Financial reporting and accounting system
- § 3514. Discontinuing certain accounts maintained by the Comptroller General
- § 3515. Financial statements of agencies
- § 3516. Reports consolidation
§ 3511. Prescribing accounting requirements and developing accounting systems
(a) The Comptroller General shall prescribe the accounting principles, standards, and requirements that the head of each executive agency shall observe. Before prescribing the principles, standards, and requirements, the Comptroller General shall consult with the Secretary of the Treasury and the President on their accounting, financial reporting, and budgetary needs, and shall consider the needs of the heads of the other executive agencies.
(b) Requirements prescribed under subsection (a) of this section shall—
(1) provide for suitable integration between the accounting process of each executive agency and the accounting of the Department of the Treasury;
(2) allow the head of each agency to carry out section 3512 of this title; and
(3) provide a method of—
(A) integrated accounting for the United States Government;
(B) complete disclosure of the results of the financial operations of each agency and the Government; and
(C) financial information and control the President and Congress require to carry out their responsibilities.
(c) Consistent with subsections (a) and (b) of this section—
(1) the authority of the Comptroller General continues under section 121(b) of title 40; and
(2) the Comptroller General may prescribe the forms, systems, and procedures that the judicial branch of the Government (except the Supreme Court) shall observe.
(d) The Comptroller General, the Secretary, and the President shall conduct a continuous program for improving accounting and financial reporting in the Government.
(Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 959; Pub. L. 107–217, § 3(h)(5), Aug. 21, 2002, 116 Stat. 1299.)
§ 3512. Executive agency accounting and other financial management reports and plans
(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 a website described in section 1122 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);
(E) a listing of agencies whose financial management systems do not comply substantially with the requirements of Section 1
1 So in original. Probably should not be capitalized.
3(a) 22 So in original. Probably should be followed by “of”. See References in Text note below.
the Federal Financial Management Improvement Act of 1996, and a summary statement of the efforts underway to remedy the noncompliance; and(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.
(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;
(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 compliance 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 ensuring the annual audit of financial 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 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.
(b) The head of each executive agency shall establish and maintain systems of accounting and internal controls that provide—
(1) complete disclosure of the financial results of the activities of the agency;
(2) adequate financial information the agency needs for management purposes;
(3) effective control over, and accountability for, assets for which the agency is responsible, including internal audit;
(4) reliable accounting results that will be the basis for—
(A) preparing and supporting the budget requests of the agency;
(B) controlling the carrying out of the agency budget; and
(C) providing financial information the President requires under section 1104(e) of this title; and
(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)
(1) To ensure compliance with subsection (b)(3) of this section and consistent with standards the Comptroller General prescribes, the head of each executive agency shall establish internal accounting and administrative controls that reasonably ensure that—
(A) obligations and costs comply with applicable law;
(B) all assets are safeguarded against waste, loss, unauthorized use, and misappropriation; and
(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.
(d)
(1) In consultation with the Comptroller General, the Director of the Office of Management and Budget—
(A) shall establish by December 31, 1982, guidelines that the head of each executive agency shall follow in evaluating the internal accounting and administrative control systems of the agency to decide whether the systems comply with subsection (c) of this section; and
(B) may change a guideline when considered necessary.
(2) By December 31 of each year (beginning in 1983), the head of each executive agency, based on an evaluation conducted according to guidelines prescribed under paragraph (1) of this subsection, shall prepare a statement on whether the systems of the agency comply with subsection (c) of this section, including—
(A) if the head of an executive agency decides the systems do not comply with subsection (c) of this section, a report identifying any material weakness in the systems and describing the plans and schedule for correcting the weakness; and
(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.
(3) The head of each executive agency shall sign the statement and reports required by this subsection and submit them to the President and Congress. The statement and reports are available to the public, except that information shall be deleted from a statement or report before it is made available if the information specifically is—
(A) prohibited from disclosure by law; or
(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.
(f) The Comptroller General shall—
(1) cooperate with the head of each executive agency in developing an accounting system for the agency; and
(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.
(Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 959; Pub. L. 97–452, § 1(12), Jan. 12, 1983, 96 Stat. 2468; Pub. L. 101–576, title III, § 301(a), Nov. 15, 1990, 104 Stat. 2847; Pub. L. 103–272, § 4(f)(1)(J), July 5, 1994, 108 Stat. 1362; Pub. L. 104–208, div. A, title I, § 101(f) [title VIII, § 805(b)], Sept. 30, 1996, 110 Stat. 3009–314, 3009–392; Pub. L. 113–101, § 4, May 9, 2014, 128 Stat. 1153; Pub. L. 116–283, div. H, title XCVI, § 9601(c)(2)(E), Jan. 1, 2021, 134 Stat. 4828.)
§ 3513. Financial reporting and accounting system
(a) The Secretary of the Treasury shall prepare reports that will inform the President, Congress, and the public on the financial operations of the United States Government. The reports shall include financial information the President requires. The head of each executive agency shall give the Secretary reports and information on the financial conditions and operations of the agency the Secretary requires to prepare the reports.
(b) The Secretary may—
(1) establish facilities necessary to prepare the reports; and
(2) reorganize the accounting functions and procedures and financial reports of the Department of the Treasury to develop an effective and coordinated system of accounting and financial reporting in the Department that will integrate the accounting results for the Department and be the operating center for consolidating accounting results of other executive agencies with accounting results of the Department.
(c) The Comptroller General shall—
(1) cooperate with the Secretary in developing and establishing the reporting and accounting system under this section; and
(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.
(Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 960.)
§ 3514. Discontinuing certain accounts maintained by the Comptroller General
The Comptroller General may discontinue an agency appropriation, expenditure, limitation, receipt, or personal ledger account maintained by the Comptroller General when the Comptroller General believes that the accounting system and internal controls of the agency will allow the Comptroller General to carry out the functions related to the account.
(Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 960.)
§ 3515. Financial statements of agencies
(a)
(1)1
1 So in original. No par. (2) has been enacted
Except as provided in subsection (e), not later than March 1 of 2003 and each year thereafter, the head of each covered executive agency shall prepare and submit to the Congress and the Director of the Office of Management and Budget an audited financial statement for the preceding fiscal year, covering all accounts and associated activities of each office, bureau, and activity of the agency.(b) Each audited financial statement of a covered executive agency under this section shall reflect—
(1) the overall financial position of the offices, bureaus, and activities covered by the statement, including assets and liabilities thereof; and
(2) results of operations of those offices, bureaus, and activities.
(c) The Director of the Office of Management and Budget shall identify components of covered executive agencies that shall be required to have audited financial statements meeting the requirements of subsection (b).
(d) The Director of the Office of Management and Budget shall prescribe the form and span of the financial statements of covered executive agencies under this section, consistent with applicable accounting and financial reporting principles, standards, and requirements.
(e)
(1) The Director of the Office of Management and Budget may exempt a covered executive agency, except an agency described in section 901(b), from the requirements of this section with respect to a fiscal year if—
(A) the total amount of budget authority available to the agency for the fiscal year does not exceed $25,000,000; and
(B) the Director determines that requiring an annual audited financial statement for the agency with respect to the fiscal year is not warranted due to the absence of risks associated with the agency’s operations, the agency’s demonstrated performance, or other factors that the Director considers relevant.
(2) The Director shall annually notify the Committee on Government Reform of the House of Representatives and the Committee on Governmental Affairs of the Senate of each agency the Director has exempted under this subsection and the reasons for each exemption.
(f) The term “covered executive agency”—
(1) means an executive agency that is not required by another provision of Federal law to prepare and submit to the Congress and the Director of the Office of Management and Budget an audited financial statement for each fiscal year, covering all accounts and associated activities of each office, bureau, and activity of the agency; and
(2) does not include a corporation, agency, or instrumentality subject to chapter 91 of this title.
(Added Pub. L. 101–576, title III, § 303(a)(1), Nov. 15, 1990, 104 Stat. 2849; amended Pub. L. 103–356, title IV, § 405(a), Oct. 13, 1994, 108 Stat. 3415; Pub. L. 106–531, § 4(a), Nov. 22, 2000, 114 Stat. 2539; Pub. L. 107–289, § 2(a), Nov. 7, 2002, 116 Stat. 2049.)
§ 3516. Reports consolidation
(a)
(1) With the concurrence of the Director of the Office of Management and Budget, the head of an executive agency may adjust the frequency and due dates of, and consolidate into an annual report to the President, the Director of the Office of Management and Budget, and Congress any statutorily required reports described in paragraph (2). Such a consolidated report shall be submitted to the President, the Director of the Office of Management and Budget, and to appropriate committees and subcommittees of Congress not later than 150 days after the end of the agency’s fiscal year.
(2) The following reports may be consolidated into the report referred to in paragraph (1):
(A) Any report by an agency to Congress, the Office of Management and Budget, or the President under section 1116, this chapter, and chapters 9, 33, 37, 75, and 91.
(B) The following agency-specific reports:
(i) The biennial financial management improvement plan by the Secretary of Defense under section 2222 1
1 See References in Text note below.
of title 10.(ii) The annual report of the Attorney General under section 522 of title 28.
(C) Any other statutorily required report pertaining to an agency’s financial or performance management if the head of the agency—
(i) determines that inclusion of that report will enhance the usefulness of the reported information to decision makers; and
(ii) consults in advance of inclusion of that report with the Committee on Governmental Affairs of the Senate, the Committee on Government Reform of the House of Representatives, and any other committee of Congress having jurisdiction with respect to the report proposed for inclusion.
(b) A report under subsection (a) that incorporates the agency’s program performance report under section 1116 shall be referred to as a performance and accountability report.
(c) A report under subsection (a) that does not incorporate the agency’s program performance report under section 1116 shall contain a summary of the most significant portions of the agency’s program performance report, including the agency’s success in achieving key performance goals for the applicable year.
(d) A report under subsection (a) shall include a statement prepared by the agency’s inspector general that summarizes what the inspector general considers to be the most serious management and performance challenges facing the agency and briefly assesses the agency’s progress in addressing those challenges. The inspector general shall provide such statement to the agency head at least 30 days before the due date of the report under subsection (a). The agency head may comment on the inspector general’s statement, but may not modify the statement.
(e) A report under subsection (a) shall include a transmittal letter from the agency head containing, in addition to any other span, an assessment by the agency head of the completeness and reliability of the performance and financial data used in the report. The assessment shall describe any material inadequacies in the completeness and reliability of the data, and the actions the agency can take and is taking to resolve such inadequacies.
(f) The Secretary of Homeland Security—
(1) shall for each fiscal year submit a performance and accountability report under subsection (a) that incorporates the program performance report under section 1116 of this title for the Department of Homeland Security;
(2) shall include in each performance and accountability report an audit opinion of the Department’s internal controls over its financial reporting; and
(3) shall design and implement Department-wide management controls that—
(A) reflect the most recent homeland security strategy developed pursuant to section 874(b)(2) of the Homeland Security Act of 2002; and
(B) permit assessment, by the Congress and by managers within the Department, of the Department’s performance in executing such strategy.
(Added Pub. L. 106–531, § 3(a), Nov. 22, 2000, 114 Stat. 2537; amended Pub. L. 108–330, § 4(a), Oct. 16, 2004, 118 Stat. 1277.)