S 75 — Improving Federal Financial Management Act

Summary

Improving Federal Financial Management Act This bill requires the Office of Management and Budget (OMB) to take certain actions to improve financial management systems across the federal government and expands the responsibilities of federal agency Chief Financial Officers (CFOs). The bill requires OMB to submit a four-year governmentwide financial management plan to Congress within six months of enactment and thereafter with the budget submitted in the first full fiscal year following the start of a presidential term. Such plans must address certain topics, including strategies for (1) improving financial management systems; (2) strengthening the financial management workforce; and (3) reporting performance and cost information. OMB must annually submit related status reports to Congress and the Government Accountability Office. Each agency CFO is assigned new responsibilities, includingpreparing the agency plan to implement OMB's governmentwide financial management plan;overseeing and providing leadership in the areas of budget formulation and execution, planning and performance, risk management, internal controls, financial systems, accounting, and other areas designated by OMB;coordinating with designated agency personnel on the strategic planning, performance measurement and reporting, and risk management functions of the agency;managing the formulation and financial execution of the agency budget;linking performance and cost information; andpreparing annual reports on progress in implementing the governmentwide financial management plan and transmitting such reports to the agency head, OMB, and Congress.The bill establishes new requirements for audits of agency accounts, such as having auditors evaluate the design of the agency's internal controls over financial reporting.

Bill Text

• Introduced Introduced in Senate Current html January 13, 2025

Compared against current U.S. Code AI-generated reading aid — verify against the official bill.

The bill modifies the governmentwide financial management plan and related responsibilities of Chief Financial Officers, reducing the plan's duration from five to four years and enhancing reporting requirements.

• 31 U.S.C. § 902(a)(1)

  An → It shall be the duty and responsibility of each agency Chief Financial Officer to oversee and provide leadership in the areas of budget formulation and execution, planning and performance, risk management, internal controls, financial systems, accounting, and other areas as the Director of the Office of Management and Budget may designate. In carrying out the preceding sentence, each

  The role of the Chief Financial Officer is more clearly defined with additional responsibilities.

• 31 U.S.C. § 902(a)(5)

  prepare, in consultation with financial management and other appropriate experts, an agency plan to implement the 4-year financial management plan prepared by the Director of the Office of Management and Budget under section 3512(a)(2) of this title and to achieve and sustain effective financial management in the agency, which shall-- (A) be completed within 90 days of the issuance of a governmentwide plan under section 3512(a)(2) of this title; (B) be revised as determined necessary by the Chief Financial Officer; (C) include performance-based financial management metrics against which the financial management performance of the agency shall be assessed; and (D) be submitted upon completion or revision to the head of the agency, the Director of the Office of Management and Budget, the Comptroller General, and appropriate committees of Congress, and be made publicly available;

  The bill requires each agency to create a specific implementation plan for the financial management plan.

• 31 U.S.C. § 902(a)(3)(D)(iv)

  performance; → performance and integration of performance and cost information; and

  Enhances the financial reporting requirements by emphasizing the integration of performance and cost information.

• 31 U.S.C. § 902(a)(4)

  be responsible for linking performance and cost information, including the preparation and submission to the head of the agency of timely performance reports that incorporate cost information;

  Establishes a requirement for linking performance data with cost information.

• 31 U.S.C. § 3512(a)(1)

  a financial management status report and a governmentwide 5-year financial management plan → a governmentwide 4-year financial management plan and a financial management status report

  Changes the governmentwide financial management plan from a five-year to a four-year plan.

• 31 U.S.C. § 3512(a)(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, including the progress made towards implementing the governmentwide 4-year financial management plan, the status of remaining challenges, and, as necessary based on obligations or expenditures, any updates or revisions to the cost estimates included in the most recent governmentwide 4-year financial management plan;

  Introduces new reporting requirements to analyze the status and progress of financial management.

• 31 U.S.C. § 3512(a)(3)(A)

  A financial management status report under this subsection shall include--

  New subsection outlining the required contents of the financial management status report.

Action History

1. January 13, 2025

   Introduced in Senate

2. January 13, 2025

   Read twice and referred to the Committee on Homeland Security and Governmental Affairs.

Sponsors

• James Lankford · Primary
• Margaret Wood Hassan · Cosponsor

Subjects