Federal Managers Financial Integrity Act of 1982

September 8, 1982

An Act to amend the Accounting and Auditing Act of 1950 to require ongoing evaluations and reports of the adequacy of the systems of internal accounting and administrative control of each executive agency, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

Sec.1. This Act may be cited as the "Federal Managers' Financial Integrity Act of 1982".

Sec.2. Section 113 of the Accounting and Auditing Act of 1950 (31 U.S.C.66a) is amended by adding at the end thereof the following new subsection:

 

(d) (1) (A) To ensure compliance with the requirements of subsection (a)(3) of this section, internal accounting and administrative controls of each executive agency shall be established in accordance with standards prescribed by the Comptroller General, and shall provide reasonable assurances that --
  (i) obligations and costs are in compliance with applicable law
(ii) funds, property, and other assets are safeguarded against waste, loss, unauthorized use, or
misappropriation; and
(iii) revenues and expenditures applicable to agency operations are properly recorded and accounted for to permit the preparation of accounts and reliable financial and statistical reports and to maintain accountability over the assets.


 

(B) The standards prescribed by the Comptroller General under this paragraph shall include standards to ensure the prompt resolution of all audit findings.

(2) By December 31, 1982 the Director of the Office of Management and Budget, in consultation with the Comptroller General, shall establish guidelines for the evaluation by agencies of their systems of internal accounting and administrative control to determine such systems' compliance with the requirements of paragraph (1) of this subsection. The Director, in consultation with the Comptroller General, may modify such guidelines from time to time as deemed necessary.

(3) By December 31, 1983, and by December 31 of each succeeding year, the head of each executive agency shall, on the basis of an evaluation conducted in accordance with guidelines prescribed under paragraph (2) of this subsection, prepare a statement --

 

(A) that the agency's systems of internal accounting and administrative control fully comply with the requirements of paragraph (1); or

 

(B) that such systems do not fully comply with such requirements.

(4) In the event that the head of an agency prepares a statement described in paragraph (3)(B), the head of such agency shall include with such statement a report in which any material weaknesses in the agency's systems of internal accounting and administrative control are identified and the plans and schedule for correcting any such weakness are described.

(5) The statements and reports required by this subsection shall be signed by the head of each executive agency and transmitted to the President and the Congress. Such statements and reports shall also be made available to the public, except that, in the case of any such statement or report containing information which is --

 

(A) specifically prohibited from disclosure by any provision of law; or

 

(B) specifically required by Executive order to be kept secret in the interest of national defense or the conduct of foreign affairs,
such information shall be deleted prior to the report or statement being made available to the public".

Sec.3. Section 201 of the Budget and Accounting Act, 1921 (31 U.S.C.11), is amended by adding at the end thereof the following new subsection:

 

(k) (1) The President shall include in the supporting detail accompanying each Budget submitted on or after January 1, 1983, a separate statement, with respect to each department and establishment, of the amounts of appropriations requested by the President for the Office of Inspector General, if any, of each such establishment or department.

(2) At the request of a committee of the Congress, additional information concerning the amount of appropriations originally requested by any office of Inspector General, shall be submitted to such committee".

Sec.4. Section 113(b) of the Accounting and Auditing Act of 1950 (31 U.S.C.66a(b)), is amended by adding at the and thereof the following new sentence: "Each annual statement prepared pursuant to subsection (d) of this section shall include a separate report on whether the agency's accounting system conforms to the principles, standards, and related requirements prescribed by the Comptroller General under section 112 of this Act.".