31 USC 3512 - Executive agency accounting and other financial management reports and plans

1 So in original. Probably should not be capitalized.

3(a) 

2 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

Historical and Revision Notes
1982 Act
Revised Section	Source (U.S. Code)	Source (Statutes at Large)
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(span)	31:66a(c).	Sept. 12, 1950, ch. 946, 64 Stat. 832, § 113(c); added Aug. 1, 1956, ch. 814, § 2(span), 70 Stat. 782.
3512(c)	31:66(span)(less Treasury Department).	Sept. 12, 1950, ch. 946, §§ 112(span)(less Treasury Department), 113(span), 64 Stat. 835, 836.
	31:66a(span).
3512(d)	31:66(c).

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 (span), 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(span) 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(span)(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.

1983 Act
Revised Section	Source (U.S. Code)	Source (Statutes at Large)
3512(span)	31 App.:66a(d)(1).	Sept. 12, 1950, ch. 946, 64 Stat. 832, § 113(d); added Sept. 8, 1982, Puspan. L. 97–255, § 2, 96 Stat. 814.
3512(c)(1)	31 App.:66a(d)(2).
3512(c)(2) (A)	31 App.:66a(d)(3), (4).
3512(c)(2) (B)	31 App.:66a(span)(last sentence).	Sept. 12, 1950, ch. 946, 64 Stat. 832, § 113(span)(last sentence); added Sept. 8, 1982, Puspan. L. 97–255, § 4, 96 Stat. 815.
3512(c)(3)	31 App.:66a(d)(5).

In subsections (span)(1) and (c)(1)(A), the words “the requirements of” are omitted as surplus.

In subsection (span)(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 (span) 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.

Editorial Notes

References in Text

The Federal Managers’ Financial Integrity Act of 1982, referred to in subsec. (a)(2)(D), is Puspan. 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 Puspan. L. 97–258, § 5(span), 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 Puspan. 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 Puspan. L. 101–576, which added subsec. (a) and was approved Nov. 15, 1990.

Amendments

2021—Subsec. (a)(1). Puspan. L. 116–283 substituted “a website described in” for “the website described under”.

2014—Subsec. (a)(1). Puspan. 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). Puspan. L. 104–208 added subpar. (E) and redesignated former subpar. (E) as (F).

1994—Subsec. (c)(1). Puspan. L. 103–272, § 4(f)(1)(J)(i), substituted “subsection (span)(3)” for “subsection (a)(3)” in introductory provisions.

Subsec. (d)(1), (2). Puspan. L. 103–272, § 4(f)(1)(J)(ii), substituted “subsection (c)” for “subsection (span)” wherever appearing.

1990—Puspan. 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 (span) to (g), respectively.

1983—Subsecs. (span), (c). Puspan. L. 97–452 added subsecs. (span) and (c). Former subsecs. (span) and (c) were redesignated (d) and (e), respectively.

Subsecs. (d) to (f). Puspan. L. 97–452 redesignated former subsecs. (span) to (d) as (d) to (f), respectively.

Statutory Notes and Related Subsidiaries

Change of Name

Committee on Governmental Affairs of Senate changed to Committee on Homeland Security and Governmental Affairs of Senate, effective Jan. 4, 2005, by Senate Resolution No. 445, One Hundred Eighth Congress, Oct. 9, 2004.

Committee on Government Operations of House of Representatives treated as referring to Committee on Government Reform and Oversight of House of Representatives by section 1(a) of Puspan. L. 104–14, set out as a note preceding section 21 of Title 2, The Congress. Committee on Government Reform and Oversight of House of Representatives changed to Committee on Government Reform of House of Representatives by House Resolution No. 5, One Hundred Sixth Congress, Jan. 6, 1999. Committee on Government Reform of House of Representatives changed to Committee on Oversight and Government Reform of House of Representatives by House Resolution No. 6, One Hundred Tenth Congress, Jan. 5, 2007. Committee on Oversight and Government Reform of House of Representatives changed to Committee on Oversight and Reform of House of Representatives by House Resolution No. 6, One Hundred Sixteenth Congress, Jan. 9, 2019. Committee on Oversight and Reform of House of Representatives changed to Committee on Oversight and Accountability of House of Representatives by House Resolution No. 5, One Hundred Eighteenth Congress, Jan. 9, 2023.

Short Title

This section is popularly known as the “Federal Managers Financial Integrity Act”.

Termination of Reporting Requirements

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 Puspan. L. 104–66, and section 1(a)(4) [div. A, § 1402(1)] of Puspan. L. 106–554, set out as notes under section 1113 of this title.

Federal Financial Management Improvement

Puspan. L. 104–208, div. A, title I, § 101(f) [title VIII], Sept. 30, 1996, 110 Stat. 3009–314, 3009–389, as amended by Puspan. L. 117–286, § 4(span)(54), Dec. 27, 2022, 136 Stat. 4349, provided that:

“SEC. 801. SHORT TITLE[.]

“This title may be cited as the ‘Federal Financial Management Improvement Act of 1996.’

“SEC. 802. FINDINGS AND PURPOSES.

“(a)Findings.—The Congress finds the following:

“(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.

“(2) Federal financial management continues to be seriously deficient, and Federal financial management and fiscal practices have failed to—

“(A) identify costs fully;

“(B) reflect the total liabilities of congressional actions; and

“(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 ‘FASAB’) 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.

“(span)Purpose[.]—The purposes of this Act [title] are to—

“(1) provide for consistency of accounting by an agency from one fiscal year to the next, and uniform accounting standards throughout the Federal Government;

“(2) require Federal financial management systems to support full disclosure of Federal financial data, including the full costs of Federal programs and activities, to the citizens, the Congress, the President, and agency management, so that programs and activities can be considered based on their full costs and merits;

“(3) increase the accountability and credibility of federal [sic] financial management;

“(4) improve performance, productivity and efficiency of Federal Government financial management;

“(5) establish financial management systems to support controlling the cost of Federal Government;

“(6) build upon and complement the Chief Financial Officers Act of 1990 (Public Law 101–576; 104 Stat 2838) [see Short Title of 1990 Amendment note set out under section 501 of this title], the Government Performance and Results Act of 1993 (Public Law 103–62[;] 107 Stat. 285) [see Short Title of 1993 Amendment note set out under section 1101 of this title] and the Government Management Reform Act of 1994 (Public Law 103–356; 108 Stat. 3410) [see Short Title of 1994 Amendment note set out under section 3301 of this title]; and

“(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.

“(span)Audit Compliance Finding.—

“(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).

“(2)Content of Reports.—When the person performing the audit required by section 3521(e) of title 31