,,ii ,calendar ,no4 #egb #aafth ,,congress #b;d ,session ,s4 #cbhg ,report ,no4 #aaf-bgh ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,february #ab1 #bjbj,mr4 ,enzi 7for himself1 ,mr4 ,warner1 ,mr4 ,grassley1 ,mr4 ,johnson1 ,mr4 ,perdue1 ,mr4 ,lankford1 ,ms4 ,hassan1 ,mrs4 ,loeffler1 ,mr4 ,braun1 ,mr4 ,peters1 and ,ms4 ,sinema7 introduced the following bill2 which was read twice and referred to the ,committee on ,homeland ,security and ,governmental ,affairs ,october #ai1 #bjbj,reported by ,mr4 ,johnson1 with an amendment,strike out all after the enacting clause and insert the part printed in italic ,a ,,bill ,to modify the governmentwide financial management plan1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,,cfo ,vision ,act of #bjbj4 #b4 ,chief financial officers2 governmentwide financial management plan 7a7 ,chief ,financial ,officer and ,deputy ,chief ,financial ,officer ,chapter #i of title #ca1 ,united ,states ,code1 is amended-- 7#a7 in section #ijb7;a7-- 7,a7 in the matter preceding paragraph 7#a71 by striking ,an and inserting ,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 execution1 planning and performance1 risk management1 internal controls1 financial systems1 and accounting4 ,in carrying out the preceding sentence1 each2 7,b7 in paragraph 7#c7-- 7i7 in subparagraph 7,c71 by inserting areas and before systems2 and 7ii7 in subparagraph 7,d7-- 7,i7 in clause 7iii71 by striking and at the end2 7,,ii7 in clause 7iv71 by striking performance2 and inserting performance and integration of performance and cost information2 and2 and 7,,iii7 by adding at the end the following3 7v7 annual agency financial statements prepared in accordance with ,united ,states generally accepted accounting principles2 4 7,c7 by redesignating paragraph 7#h7 as paragraph 7#aj72 7,d7 by redesignating paragraphs 7#e7 through 7#g7 as paragraphs 7#f7 through 7#h71 respectively2 7,e7 by inserting after paragraph 7#d7 the following3 7#e7 prepare1 in consultation with financial management and other appropriate experts1 an agency plan to implement the #d-year financial management plan prepared by the ,director of the ,office of ,management and ,budget under section #ceab7;a77#b7 of this title and to achieve and sustain effective financial management in the agency1 which shall-- 7,a7 be completed within #ij days of the issuance of a governmentwide plan under section #ceab7;a77#b7 of this title2 7,b7 be revised as determined necessary by the ,chief ,financial ,officer2 7,c7 include performance-based financial management metrics against which the financial management performance of the agency shall be assessed2 and 7,d7 be submitted upon completion or revision to the head of the agency1 the ,director of the ,office of ,management and ,budget1 the ,comptroller ,general1 and appropriate committees of ,congress1 and be made publicly available2 2 7,f7 in paragraph 7#f71 as so redesignated-- 7i7 by striking subparagraph 7,a72 7ii7 by redesignating subparagraphs 7,b7 through 7,e7 as subparagraphs 7,a7 through 7,d71 respectively2 and 7iii7 in subparagraph 7,c71 as so redesignated1 by adding and at the end2 7,g7 in paragraph 7#g71 as so redesignated-- 7i7 in the matter preceding subparagraph 7,a71 by striking and the ,director of the ,office of ,management and ,budget1 and inserting 1 the ,director of the ,office of ,management and ,budget1 the ,comptroller ,general1 and appropriate committees of ,congress1 which shall be made publicly available and2 7ii7 in subparagraph 7,a71 by striking agency2 and inserting agency1 including-- 7i7 the progress of the agency in implementing the agency plan described in paragraph 7#e72 7ii7 the progress of the agency in implementing the governmentwide #d-year financial management plan prepared by the ,director of the ,office of ,management and ,budget under section #ceab7;a77#b7 of this title2 and 7iii7 the performance of the agency against financial management metrics established by the ,director of the ,office of ,management and ,budget2 2 and 7iii7 in subparagraph 7,d7-- 7,i7 by striking of the reports and inserting of-- 7i7 the reports 2 7,,ii7 in clause 7i71 as so designated1 by striking the amendments made by the ,federal ,managers' ,financial ,integrity ,act of #aihg 7,public law #ig-bee72 and and inserting section #ceab7;d7 of this title22 and 7,,iii7 by adding at the end the following3 7ii7 agency spending data published under the ,federal ,funding ,accountability and ,transparency ,act of #bjjf 7#ca ,u4,s4,c4 #faja note72 and 7iii7 the reporting of the agency under the ,federal ,financial ,management ,improvement ,act of #aiif 7#ca ,u4,s4,c4 #ceab note72 and 2 7,h7 in paragraph 7#h71 as so redesignated-- 7i7 by striking monitor the and insert manage the formulation and2 and 7ii7 by striking 1 and prepare and submit to the head of the agency timely performance reports2 and and inserting a semicolon2 7,i7 by inserting after paragraph 7#h71 as so redesignated1 the following3 7#i7 be responsible for linking performance and cost information1 including the preparation and submission to the head of the agency of timely performance reports that incorporate cost information2 2 7,j7 in paragraph 7#aj71 as so redesignated-- 7i7 by inserting inflation and before costs2 and 7ii7 by striking the period at the end and inserting 2 and2 and 7,k7 by adding at the end the following3 7#aa7 coordinate with senior agency personnel1 including the ,chief ,data ,officer1 ,chief ,information ,officer1 ,chief ,performance ,officer1 ,chief ,acquisition ,officer1 ,chief ,risk ,officer1 and ,chief ,evaluation ,officer of the agency on-- 7,a7 the exercise of authorities under this subsection2 and 7,b7 the strategic planning1 performance measurement and reporting1 and risk management functions of the agency4 2 and 7#b7 in section #ijc-- 7,a7 in subsection 7a71 by inserting and who shall assist the agency ,chief ,financial ,officer in the performance of each of the duties of the agency ,chief ,financial ,officer under this chapter after matters2 and 7,b7 by adding at the end the following3 7c7 ,notwithstanding subchapter ,,iii of chapter #cc of title #e1 ,united ,states ,code1 in the event of a vacancy in the position of ,chief ,financial ,officer of an agency1 only the ,deputy ,chief ,financial ,officer of the agency shall serve as the acting ,chief ,financial ,officer4 4 7b7 ,governmentwide financial management plan ,section #ceab of title #ca1 ,united ,states ,code1 is amended-- 7#a7 in subsection 7a7-- 7,a7 in paragraph 7#a71 by striking a financial management status report and a governmentwide #e-year financial management plan and inserting a governmentwide #d-year financial management plan and a financial management status report2 7,b7 by striking paragraph 7#b72 7,c7 by redesignating paragraph 7#c7 as paragraph 7#b72 7,d7 in paragraph 7#b71 as so redesignated-- 7i7 in subparagraph 7,a7-- 7,i7 by striking #e-year and inserting #d-year2 7,,ii7 by striking shall describe and inserting the following3 shall-- 7i7 describe 2 7,,iii7 in clause 7i71 as so designated1 by striking #e fiscal years to improve the financial management of the ,federal ,government4 and inserting #d fiscal years to improve the financial management of the ,federal ,government in a manner that is strategic1 comprehensive1 and cost-effective2 and2 and 7,,iv7 by adding at the end the following3 7ii7 be developed in consultation with the ,chief ,financial ,officers ,council1 the ,chief ,information ,officers ,council1 the ,chief ,data ,officer ,council1 the ,chief ,acquisition ,officers ,council1 the ,council of the ,inspectors ,general on ,integrity and ,efficiency1 the ,government ,accountability ,office1 and other appropriate financial management experts4 2 and 7ii7 in subparagraph 7,b7-- 7,i7 in the matter preceding clause 7i71 by striking #e-year and inserting #d-year2 7,,ii7 in clause 7iii7-- 7aa7 by striking for developing and inserting for improving financial management systems1 including-- 7,i7 developing 2 and 7bb7 by adding at the end the following3 7,,ii7 linking performance and cost information to facilitate effective and efficient decision making2 7,,iii7 eliminating duplicative and unnecessary systems2 and 7,,iv7 identifying opportunities for agencies to share systems and encouraging agencies to do so where practicable2 2 7,,iii7 by striking clause 7iv72 7,,iv7 by redesignating clause 7v7 as clause 7iv72 7,v7 by inserting after clause 7iv71 as so redesignated1 the following3 7v7 provide a strategy for reporting performance and cost information2 2 7,,vi7 in clause 7vi71 by striking #e-year and inserting #d-year2 7,,vii7 in clause 7vii71 by striking identify and inserting provide a strategy for strengthening the ,federal financial management workforce1 including identification of2 7,,viii7 in clause 7viii71 by striking and at the end2 7,,ix7 by redesignating clause 7ix7 as clause 7x72 7,x7 by inserting after clause 7viii7 the following3 7ix7 include comprehensive financial management performance-based metrics against which the financial management performance of executive agencies can be assessed2 and 2 and 7,,xi7 in clause 7x71 as so redesignated1 by striking #e-year and inserting #d-year2 7,e7 by inserting after paragraph 7#b7 the following3 7#c7 ,a financial management status report under this subsection shall include-- 7,a7 a description and analysis of the status of financial management in the executive branch1 including the progress made towards implementing the governmentwide #d-year financial management plan1 the status of remaining challenges1 and cost estimates of improvements to ,federal financial management2 7,b7 a summary of the performance of agencies against the metrics developed and identified by the ,director of the ,office of ,management and ,budget in the governmentwide #d-year financial management plan2 7,c7 a summary of the most recently completed financial statements-- 7i7 of ,federal agencies under section #ceae of this title2 and 7ii7 of ,government corporations2 7,d7 a summary of the most recently completed financial statement audits and reports-- 7i7 of ,federal agencies under subsections 7e7 and 7f7 of section #ceba of this title2 and 7ii7 of ,government corporations2 7,e7 a summary of reports on internal accounting and administrative control systems submitted to the ,president and ,congress under subsection 7d72 7,f7 a listing of agencies whose financial management systems do not comply substantially with the requirements of section #hjc7;a7 of the ,federal ,financial ,management ,improvement ,act of #aiif 7#ca ,u4,s4,c4 #ceab note71 and a summary statement of the efforts underway to remedy the noncompliance2 and 7,g7 any other information the ,director considers appropriate to fully inform ,congress regarding the financial management of the ,federal ,government4 2 7,f7 in paragraph 7#d7-- 7i7 in subparagraph 7,a7-- 7,i7 by striking #ae months after the date of the enactment of this subsection and inserting ,january #ca after the date of enactment of the ,,cfo ,vision ,act of #bjbj2 and 7,,ii7 by striking #e-year and inserting #d-year2 and 7ii7 in subparagraph 7,b7-- 7,i7 in clause 7i7-- 7aa7 by striking ,not later than ,january #ca of each year thereafter and inserting ,at a minimum1 concurrently with the submission of the budget of the ,united ,states ,government under section #aaje7;a7 of this title made in the first full fiscal year following any year in which the term of the ,president commences under section #aja of title #c2 7bb7 by striking financial management status report and a revised governmentwide #e-year and inserting governmentwide #d-year2 and 7cc7 by striking #e fiscal years and all that follows through the period at the end and inserting #d fiscal years42 and 7,,ii7 in clause 7ii71 by striking revised governmentwide #e-year and inserting governmentwide #d-year2 and 7iii7 by adding at the end the following3 7,c7 ,each year1 concurrently with the submission of the budget of the ,united ,states ,government under section #aaje7;a7 of this title1 the ,director of the ,office of ,management and ,budget shall submit to the appropriate committees of ,congress and the ,comptroller ,general a financial management status report4 2 and 7,g7 by striking paragraph 7#e72 7#b7 in subsection 7d77#b7-- 7,a7 in subparagraph 7,a71 by striking and at the end2 7,b7 in subparagraph 7,b71 by striking the period at the end and inserting 2 and2 and 7,c7 by adding at the end the following3 7,c7 a separate report on the results of the assessment required under subsection 7e77#b74 2 7#c7 by redesignating subsections 7e71 7f71 and 7g7 as subsections 7f71 7g71 and 7h71 respectively2 and 7#d7 by inserting after subsection 7d7 the following3 7e7 ,the head of each executive agency shall-- 7#a7 in establishing the internal accounting and administrative controls under subsection 7c71 identify the key financial management information needed for effective financial management decision making2 and 7#b7 annually assess the effectiveness of the internal controls of the executive agency over financial reporting and key financial management information identified under paragraph 7#a74 4 7c7 ,audits by agencies ,section #ceba of title #ca1 ,united ,states ,code1 is amended-- 7#a7 in subsection 7e7-- 7,a7 by redesignating paragraphs 7#a7 and 7#b7 as subparagraphs 7,a7 and 7,b71 respectively1 and adjusting the margins accordingly2 7,b7 by striking 7e7 ,each financial and inserting 7e77#a7 ,each financial2 7,c7 in paragraph 7#a71 as so designated1 by striking standards-- and inserting standards42 and 7,d7 by inserting after paragraph 7#a71 as so designated1 the following3 7#b7 ,as part of each audit under this subsection1 the auditor shall-- 7,a7 evaluate the design of the internal control of the agency over financial reporting and key financial information1 as assessed and reported on by the head of the agency under section #ceab7;d77#b77;,c7 of this title2 7,b7 determine whether those controls have been implemented2 7,c7 for controls that are properly designed and implemented1 perform sufficient tests of those controls to conclude whether the controls are operating effectively and to support a low level of assessed control risk2 and 7,d7 communicate controls that the auditor concludes are not suitably designed and implemented or are not operating effectively1 as appropriate under applicable generally accepted government auditing standards4 7#c7 ,audits under this subsection shall be conducted-- 2 and 7#b7 in subsection 7h71 by striking section #ceab7;a77#c77;,b77viii7 and inserting section #ceab7;a77#b77;,b77viii74 7d7 ,technical and conforming amendment ,section #ccdh7;e7 of title #e1 ,united ,states ,code1 is amended-- 7#a7 in paragraph 7#c71 by adding or at the end2 7#b7 by striking paragraph 7#d72 and 7#c7 by redesignating paragraph 7#e7 as paragraph 7#d74 #a4 ,short title ,this ,act may be cited as the ,,cfo ,vision ,act of #bjbj4 #b4 ,chief financial officers2 governmentwide financial management plan 7a7 ,chief ,financial ,officer and ,deputy ,chief ,financial ,officer ,chapter #i of title #ca1 ,united ,states ,code1 is amended-- 7#a7 in section #ijb7;a7-- 7,a7 in the matter preceding paragraph 7#a71 by striking ,an and inserting ,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 execution1 planning and performance1 risk management1 internal controls1 financial systems1 accounting1 and other areas as the ,director of the ,office of ,management and ,budget may designate4 ,in carrying out the preceding sentence1 each2 7,b7 in paragraph 7#c7-- 7i7 in subparagraph 7,c71 by inserting areas and before systems2 and 7ii7 in subparagraph 7,d7-- 7,i7 in clause 7iii71 by striking and at the end2 7,,ii7 in clause 7iv71 by striking performance2 and inserting performance and integration of performance and cost information2 and2 and 7,,iii7 by adding at the end the following3 7v7 annual agency financial statements prepared in accordance with ,united ,states generally accepted accounting principles2 4 7,c7 by redesignating paragraph 7#h7 as paragraph 7#aj72 7,d7 by redesignating paragraphs 7#e7 through 7#g7 as paragraphs 7#f7 through 7#h71 respectively2 7,e7 by inserting after paragraph 7#d7 the following3 7#e7 prepare1 in consultation with financial management and other appropriate experts1 an agency plan to implement the #d-year financial management plan prepared by the ,director of the ,office of ,management and ,budget under section #ceab7;a77#b7 of this title and to achieve and sustain effective financial management in the agency1 which shall-- 7,a7 be completed within #ij days of the issuance of a governmentwide plan under section #ceab7;a77#b7 of this title2 7,b7 be revised as determined necessary by the ,chief ,financial ,officer2 7,c7 include performance-based financial management metrics against which the financial management performance of the agency shall be assessed2 and 7,d7 be submitted upon completion or revision to the head of the agency1 the ,director of the ,office of ,management and ,budget1 the ,comptroller ,general1 and appropriate committees of ,congress1 and be made publicly available2 2 7,f7 in paragraph 7#f71 as so redesignated-- 7i7 by striking subparagraph 7,a72 7ii7 by redesignating subparagraphs 7,b7 through 7,e7 as subparagraphs 7,a7 through 7,d71 respectively2 and 7iii7 in subparagraph 7,c71 as so redesignated1 by adding and at the end2 7,g7 in paragraph 7#g71 as so redesignated-- 7i7 in the matter preceding subparagraph 7,a71 by striking and the ,director of the ,office of ,management and ,budget1 and inserting 1 the ,director of the ,office of ,management and ,budget1 the ,comptroller ,general1 and appropriate committees of ,congress1 which shall be made publicly available and2 7ii7 in subparagraph 7,a71 by striking agency2 and inserting agency1 including-- 7i7 the progress of the agency in implementing the agency plan described in paragraph 7#e72 7ii7 the progress of the agency in implementing the governmentwide #d-year financial management plan prepared by the ,director of the ,office of ,management and ,budget under section #ceab7;a77#b7 of this title2 and 7iii7 the performance of the agency against financial management metrics established by the ,director of the ,office of ,management and ,budget2 2 and 7iii7 in subparagraph 7,d7-- 7,i7 by striking of the reports and inserting of-- 7i7 the reports 2 7,,ii7 in clause 7i71 as so designated1 by striking the amendments made by the ,federal ,managers' ,financial ,integrity ,act of #aihg 7,public law #ig-bee72 and and inserting section #ceab7;d7 of this title22 and 7,,iii7 by adding at the end the following3 7ii7 agency spending data published under the ,federal ,funding ,accountability and ,transparency ,act of #bjjf 7#ca ,u4,s4,c4 #faja note72 and 7iii7 the reporting of the agency under the ,federal ,financial ,management ,improvement ,act of #aiif 7#ca ,u4,s4,c4 #ceab note72 and 2 7,h7 in paragraph 7#h71 as so redesignated-- 7i7 by striking monitor the and insert manage the formulation and2 and 7ii7 by striking 1 and prepare and submit to the head of the agency timely performance reports2 and and inserting a semicolon2 7,i7 by inserting after paragraph 7#h71 as so redesignated1 the following3 7#i7 be responsible for linking performance and cost information1 including the preparation and submission to the head of the agency of timely performance reports that incorporate cost information2 2 7,j7 in paragraph 7#aj71 as so redesignated-- 7i7 by inserting inflation and before costs2 and 7ii7 by striking the period at the end and inserting 2 and2 and 7,k7 by adding at the end the following3 7#aa7 coordinate with senior agency personnel1 including the ,chief ,data ,officer1 ,chief ,information ,officer1 ,chief ,performance ,officer1 ,chief ,acquisition ,officer1 ,chief ,risk ,officer1 and ,chief ,evaluation ,officer of the agency on-- 7,a7 the exercise of authorities under this subsection2 and 7,b7 the strategic planning1 performance measurement and reporting1 and risk management functions of the agency4 2 and 7#b7 in section #ijc-- 7,a7 in subsection 7a71 by inserting and who shall assist the agency ,chief ,financial ,officer in the performance of each of the duties of the agency ,chief ,financial ,officer under this chapter after matters2 and 7,b7 by adding at the end the following3 7c7 ,notwithstanding subchapter ,,iii of chapter #cc of title #e1 in the event of a vacancy in the position of ,chief ,financial ,officer of an agency1 the ,deputy ,chief ,financial ,officer of the agency shall serve as the acting ,chief ,financial ,officer4 4 7b7 ,governmentwide financial management plan ,section #ceab of title #ca1 ,united ,states ,code1 is amended-- 7#a7 in subsection 7a7-- 7,a7 in paragraph 7#a71 by striking a financial management status report and a governmentwide #e-year financial management plan and inserting a governmentwide #d-year financial management plan and a financial management status report2 7,b7 by striking paragraph 7#b72 7,c7 by redesignating paragraph 7#c7 as paragraph 7#b72 7,d7 in paragraph 7#b71 as so redesignated-- 7i7 in subparagraph 7,a7-- 7,i7 by striking #e-year and inserting #d-year2 7,,ii7 by striking shall describe and inserting the following3 shall-- 7i7 describe 2 7,,iii7 in clause 7i71 as so designated1 by striking #e fiscal years to improve the financial management of the ,federal ,government4 and inserting #d fiscal years to improve the financial management of the ,federal ,government in a manner that is strategic1 comprehensive1 and cost-effective2 and2 and 7,,iv7 by adding at the end the following3 7ii7 be developed in consultation with the ,chief ,financial ,officers ,council1 the ,chief ,information ,officers ,council1 the ,chief ,data ,officer ,council1 the ,chief ,acquisition ,officers ,council1 the ,council of the ,inspectors ,general on ,integrity and ,efficiency1 the ,government ,accountability ,office1 and1 as appropriate1 other councils and financial management experts4 2 and 7ii7 in subparagraph 7,b7-- 7,i7 in the matter preceding clause 7i71 by striking #e-year and inserting #d-year2 7,,ii7 in clause 7iii7-- 7aa7 by striking for developing and inserting for improving financial management systems1 including-- 7,i7 developing 2 and 7bb7 by adding at the end the following3 7,,ii7 linking performance and cost information to facilitate effective and efficient decision making2 7,,iii7 eliminating duplicative and unnecessary systems and activities2 and 7,,iv7 identifying opportunities for agencies to share systems and services and encouraging agencies to do so where practicable2 2 7,,iii7 by striking clause 7iv72 7,,iv7 by redesignating clause 7v7 as clause 7iv72 7,v7 by inserting after clause 7iv71 as so redesignated1 the following3 7v7 provide a strategy for reporting performance and cost information2 2 7,,vi7 in clause 7vi71 by striking #e-year and inserting #d-year2 7,,vii7 in clause 7vii71 by striking identify and inserting provide a strategy for strengthening the ,federal financial management workforce1 including identification of2 7,,viii7 in clause 7viii71 by striking and at the end2 7,,ix7 by redesignating clause 7ix7 as clause 7x72 7,x7 by inserting after clause 7viii7 the following3 7ix7 include comprehensive financial management performance-based metrics against which the financial management performance of executive agencies can be assessed2 and 2 and 7,,xi7 in clause 7x71 as so redesignated1 by striking #e-year and inserting #d-year2 7,e7 by inserting after paragraph 7#b7 the following3 7#c7 ,a financial management status report under this subsection shall include-- 7,a7 a description and analysis of the status of financial management in the executive branch1 including the progress made towards implementing the governmentwide #d-year financial management plan1 the status of remaining challenges1 and1 as necessary based on obligations or expenditures1 any updates or revisions to the cost estimates included in the most recent governmentwide #d-year financial management plan2 7,b7 a summary of the performance of agencies against the metrics developed and identified by the ,director of the ,office of ,management and ,budget in the governmentwide #d-year financial management plan2 7,c7 a summary of the most recently completed financial statements-- 7i7 of ,federal agencies under section #ceae of this title2 and 7ii7 of ,government corporations2 7,d7 a summary of the most recently completed financial statement audits and reports-- 7i7 of ,federal agencies under subsections 7e7 and 7f7 of section #ceba of this title2 and 7ii7 of ,government corporations2 7,e7 a summary of reports on internal accounting and administrative control systems submitted to the ,president and ,congress under subsection 7d72 7,f7 a listing of agencies whose financial management systems do not comply substantially with the requirements of section #hjc7;a7 of the ,federal ,financial ,management ,improvement ,act of #aiif 7#ca ,u4,s4,c4 #ceab note71 and a summary statement of the efforts underway to remedy the noncompliance2 and 7,g7 any other information the ,director considers appropriate to fully inform ,congress regarding the financial management of the ,federal ,government4 2 7,f7 in paragraph 7#d7-- 7i7 in subparagraph 7,a7-- 7,i7 by striking #ae months after the date of the enactment of this subsection and inserting #f months after the date of enactment of the ,,cfo ,vision ,act of #bjbj2 and 7,,ii7 by striking #e-year and inserting #d-year2 and 7ii7 in subparagraph 7,b7-- 7,i7 in clause 7i7-- 7aa7 by striking ,not later than ,january #ca of each year thereafter and inserting ,at a minimum1 concurrently with the submission of the budget of the ,united ,states ,government under section #aaje7;a7 of this title made in the first full fiscal year following any year in which the term of the ,president commences under section #aja of title #c2 7bb7 by striking financial management status report and a revised governmentwide #e-year and inserting governmentwide #d-year2 and 7cc7 by striking #e fiscal years and all that follows through the period at the end and inserting #d fiscal years42 and 7,,ii7 in clause 7ii7-- 7aa7 by striking revised governmentwide #e-year and inserting governmentwide #d-year2 and 7bb7 by striking paragraph 7#c77;,b77viii7 and inserting paragraph 7#b77;,b77viii72 and 7iii7 by adding at the end the following3 7,c7 ,each year1 concurrently with the submission of the budget of the ,united ,states ,government under section #aaje7;a7 of this title1 the ,director of the ,office of ,management and ,budget shall submit to the appropriate committees of ,congress and the ,comptroller ,general a financial management status report4 2 and 7,g7 by striking paragraph 7#e72 7#b7 in subsection 7d77#b7-- 7,a7 in subparagraph 7,a71 by striking and at the end2 7,b7 in subparagraph 7,b71 by striking the period at the end and inserting 2 and2 and 7,c7 by adding at the end the following3 7,c7 a separate report on the results of the assessment and conclusion required under subsection 7e77#b74 2 7#c7 by redesignating subsections 7e71 7f71 and 7g7 as subsections 7f71 7g71 and 7h71 respectively2 and 7#d7 by inserting after subsection 7d7 the following3 7e7 ,the head of each executive agency shall-- 7#a7 in establishing the internal accounting and administrative controls under subsection 7c71 identify the key financial management information needed for effective financial management and decision making2 and 7#b7 annually assess and make a conclusion on the effectiveness of the internal controls of the executive agency over financial reporting and key financial management information identified under paragraph 7#a74 4 7c7 ,audits by agencies ,section #ceba of title #ca1 ,united ,states ,code1 is amended-- 7#a7 in subsection 7e7-- 7,a7 by redesignating paragraphs 7#a7 and 7#b7 as subparagraphs 7,a7 and 7,b71 respectively1 and adjusting the margins accordingly2 7,b7 by striking 7e7 ,each financial and inserting 7e77#a7 ,each financial2 7,c7 in paragraph 7#a71 as so designated1 by striking standards-- and inserting standards42 and 7,d7 by inserting after paragraph 7#a71 as so designated1 the following3 7#b7 ,as part of each audit under this subsection1 the auditor shall-- 7,a7 evaluate the design of the internal control of the agency over financial reporting and key financial information1 as assessed and reported on by the head of the agency under section #ceab7;d77#b77;,c7 of this title2 7,b7 determine whether those controls have been implemented2 7,c7 for controls that are properly designed and implemented1 perform sufficient tests of those controls to conclude whether the controls are operating effectively and to support a low level of assessed control risk2 and 7,d7 communicate controls that the auditor concludes are not suitably designed and implemented or are not operating effectively1 as appropriate under applicable generally accepted government auditing standards4 7#c7 ,audits under this subsection shall be conducted-- 2 and 7#b7 in subsection 7h71 by striking section #ceab7;a77#c77;,b77viii7 and inserting section #ceab7;a77#b77;,b77viii74 7d7 ,technical and conforming amendment ,section #ccdh7;e7 of title #e1 ,united ,states ,code1 is amended-- 7#a7 in paragraph 7#c71 by adding or at the end2 7#b7 by striking paragraph 7#d72 and 7#c7 by redesignating paragraph 7#e7 as paragraph 7#d74 ,october #ai1 #bjbj,reported with an amendment