31 U.S.C. § 3516 — Reports consolidation

Page 277 TITLE 31—MONEY AND FINANCE § 3516 1 See References in Text note below. this title, as added by section 303(a)(1) of Pub. L. 101–576, would take effect on date on which a resolution was passed by Congress and approved by the President, provided that Director of Office of Management and Budget could, for fiscal year 1991, waive application of section 3515(a) of this title with respect to any revolv- ing fund, trust fund, or account of an executive agency, and described and specified procedures for passage of the resolution. WAIVER AUTHORITY Pub. L. 107–289, § 2(b), Nov. 7, 2002, 116 Stat. 2050, pro- vided that: ‘‘(1) IN GENERAL.—The Director of the Office of Man- agement and Budget may waive the application of all or part of section 3515(a) of title 31, United States Code, as amended by this section, for financial statements re- quired for the first 2 fiscal years beginning after the date of the enactment of this Act [Nov. 7, 2002] for an agency described in paragraph (2) of this subsection. ‘‘(2) AGENCIES DESCRIBED.—An agency referred to in paragraph (1) is any covered executive agency (as that term is defined by section 3515(f) of title 31, United States Code, as amended by subsection (a) of this sec- tion) that is not an executive agency identified in sec- tion 901(b) of title 31, United States Code.’’ REPORT ON SUBSTANTIAL COMMERCIAL FUNCTIONS Pub. L. 101–576, title III, § 303(c), Nov. 15, 1990, 104 Stat. 2851, directed Director of Office of Management and Budget, not later than 180 days after Nov. 15, 1990, to determine and report to Congress on which executive agencies or parts thereof perform substantial commer- cial functions for which financial statements can be prepared practicably under 31 U.S.C. 3515. PILOT PROJECT FOR PREPARATION AND AUDIT OF FINANCIAL STATEMENTS; REPORT TO CONGRESS Pub. L. 101–576, title III, § 303(d), (e), Nov. 15, 1990, 104 Stat. 2851, 2852, directed specific departments, adminis- trations, and services by Mar. 31 of 1991, 1992, and 1993 to prepare and submit to Director of Office of Manage- ment and Budget financial statements for the pre- ceding fiscal year for the accounts of all of the offices, bureaus, and activities, required each financial state- ment to be audited in accordance with 31 U.S.C. section 3521(e), (f), (g), and (h), and directed Director of Office of Management and Budget, not later than June 30, 1993, to report to Congress on the financial statements including an analysis of the accuracy of the data, the difficulties encountered in preparing the data, the ben- efits derived from preparation of the financial state- ments, and the cost associated with preparing and au- diting the financial statements. § 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 Of- fice 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 im- provement plan by the Secretary of Defense under section 2222 1 of title 10. (ii) The annual report of the Attorney Gen- eral under section 522 of title 28. (C) Any other statutorily required report pertaining to an agency’s financial or perform- ance 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 Rep- resentatives, and any other committee of Congress having jurisdiction with respect to the report proposed for inclusion. (b) A report under subsection (a) that incor- porates the agency’s program performance re- port 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 sum- mary of the most significant portions of the agency’s program performance report, including the agency’s success in achieving key perform- ance 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 man- agement and performance challenges facing the agency and briefly assesses the agency’s progress in addressing those challenges. The in- spector 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 gen- eral’s statement, but may not modify the state- ment. (e) A report under subsection (a) shall include a transmittal letter from the agency head con- taining, in addition to any other content, an as- sessment by the agency head of the complete- ness and reliability of the performance and fi- nancial 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 re- solve such inadequacies. (f) The Secretary of Homeland Security— (1) shall for each fiscal year submit a per- formance and accountability report under sub- section (a) that incorporates the program per- formance report under section 1116 of this title for the Department of Homeland Security; (2) shall include in each performance and ac- countability report an audit opinion of the De- partment’s internal controls over its financial reporting; and (3) shall design and implement Department- wide management controls that— (A) reflect the most recent homeland secu- rity strategy developed pursuant to section 874(b)(2) of the Homeland Security Act of 2002; and Page 278 TITLE 31—MONEY AND FINANCE § 3516 (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.) Editorial Notes REFERENCES IN TEXT Section 2222 of title 10, referred to in subsec. (a)(2)(B)(i), was repealed by Pub. L. 107–314, div. A, title X, § 1004(h)(1), Dec. 2, 2002, 116 Stat. 2631. Section 874(b)(2) of the Homeland Security Act of 2002, referred to in subsec. (f)(3)(A), is classified to sec- tion 454(b)(2) of Title 6, Domestic Security. AMENDMENTS 2004—Subsec. (f). Pub. L. 108–330 added subsec. (f). Statutory Notes and Related Subsidiaries CHANGE OF NAME Committee on Government Reform of House of Rep- resentatives 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 Com- mittee on Oversight and Reform of House of Represent- atives by House Resolution No. 6, One Hundred Six- teenth 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 Hun- dred Eighteenth Congress, Jan. 9, 2023. Committee on Governmental Affairs of Senate changed to Committee on Homeland Security and Gov- ernmental Affairs of Senate, effective Jan. 4, 2005, by Senate Resolution No. 445, One Hundred Eighth Con- gress, Oct. 9. 2004. DEPARTMENT OF HOMELAND SECURITY AUDIT REQUIREMENT TARGET Pub. L. 112–217, Dec. 20, 2012, 126 Stat. 1591, provided that: ‘‘SECTION 1. SHORT TITLE. ‘‘This Act may be cited as the ‘DHS Audit Require- ment Target Act of 2012’ or the ‘DART Act’. ‘‘SEC. 2. IMPROVING FINANCIAL ACCOUNTABILITY AND MANAGEMENT. ‘‘(a) DEFINITIONS.—In this section— ‘‘(1) the term ‘Department’ means the Department of Homeland Security; ‘‘(2) the term ‘financial management systems’ has the meaning given that term under section 806 of the Federal Financial Management Improvement Act of 1996 (31 U.S.C. 3512 note); ‘‘(3) the term ‘Secretary’ means the Secretary of Homeland Security; and ‘‘(4) the term ‘unqualified opinion’ mean an un- qualified opinion within the meaning given that term under generally accepted auditing standards. ‘‘(b) REACHING AN UNQUALIFIED AUDIT OPINION.—In order to ensure compliance with the Department of Homeland Security Financial Accountability Act (Pub- lic Law 108–330; 118 Stat. 1275) [see Short Title of 2004 Amendment note set out under section 101 of Title 6, Domestic Security], and the amendments made by that Act, the Secretary shall take the necessary steps to en- sure that the full set of consolidated financial state- ments of the Department for the fiscal year ending Sep- tember 30, 2013, and each fiscal year thereafter, are ready in a timely manner and in preparation for an audit as part of preparing the performance and ac- countability reports required under section 3516(f) of title 31, United States Code, (including submitting the reports not later than November 15, 2013, and each year thereafter) in order to obtain an unqualified opinion on the full set of financial statements for the fiscal year. ‘‘(c) REPORT TO CONGRESS ON PROGRESS OF MEETING AUDIT REQUIREMENTS.—In order to ensure progress in implementing the Department of Homeland Security Financial Accountability Act (Public Law 108–330; 118 Stat. 1275), and the amendments made by that Act, dur- ing the period beginning on the date of enactment of this Act [Dec. 20, 2012] and ending on the date on which an unqualified opinion described in subsection (b) is submitted, each report submitted by the Chief Finan- cial Officer of the Department under section 902(a)(6) of title 31, United States Code, shall include a plan— ‘‘(1) to obtain an unqualified opinion on the full set of financial statements, which shall discuss plans and resources needed to meet the deadlines under sub- section (b); ‘‘(2) that addresses how the Department will elimi- nate material weaknesses and significant deficiencies in internal controls over financial reporting and pro- vides deadlines for the elimination of such weak- nesses and deficiencies; and ‘‘(3) to modernize the financial management sys- tems of the Department, including timelines, goals, alternatives, and costs of the plan, which shall in- clude consideration of alternative approaches, includ- ing modernizing the existing financial management systems and associated financial controls of the De- partment and establishing new financial management systems and associated financial controls.’’ AUDIT OPINION AND INTERNAL CONTROLS BY SECRETARY OF HOMELAND SECURITY Pub. L. 108–330, § 4(b), (c), Oct. 16, 2004, 118 Stat. 1277, provided that: ‘‘(b) IMPLEMENTATION OF AUDIT OPINION REQUIRE- MENT.—The Secretary of Homeland Security shall in- clude audit opinions in performance and accountability reports under section 3516(f) of title 31, United States Code, as amended by subsection (a), only for fiscal years after fiscal year 2005. ‘‘(c) ASSERTION OF INTERNAL CONTROLS.—The Sec- retary of Homeland Security shall include in the per- formance and accountability report for fiscal year 2005 submitted by the Secretary under section 3516(f) of title 31, United States Code, an assertion of the internal con- trols that apply to financial reporting by the Depart- ment of Homeland Security.’’ FINDINGS AND PURPOSES Pub. L. 106–531, § 2, Nov. 22, 2000, 114 Stat. 2537, pro- vided that: ‘‘(a) FINDINGS.—Congress finds that— ‘‘(1) existing law imposes numerous financial and performance management reporting requirements on agencies; ‘‘(2) these separate requirements can cause duplica- tion of effort on the part of agencies and result in un- coordinated reports containing information in a form that is not completely useful to Congress; and ‘‘(3) pilot projects conducted by agencies under the direction of the Office of Management and Budget demonstrate that single consolidated reports pro- viding an analysis of verifiable financial and perform- ance management information produce more useful reports with greater efficiency. ‘‘(b) PURPOSES.—The purposes of this Act [see Short Title of 2000 Amendment note set out under section 3501 of this title] are— ‘‘(1) to authorize and encourage the consolidation of financial and performance management reports; ‘‘(2) to provide financial and performance manage- ment information in a more meaningful and useful format for Congress, the President, and the public; ‘‘(3) to improve the quality of agency financial and performance management information; and Page 279 TITLE 31—MONEY AND FINANCE § 3521 ‘‘(4) to enhance coordination and efficiency on the part of agencies in reporting financial and perform- ance management information.’’ SPECIAL RULE FOR FISCAL YEARS 2000 AND 2001 Pub. L. 106–531, § 3(b), Nov. 22, 2000, 114 Stat. 2538, pro- vided that: ‘‘Notwithstanding paragraph (1) of section 3516(a) of title 31, United States Code (as added by sub- section (a) of this section), the head of an executive agency may submit a consolidated report under such paragraph not later than 180 days after the end of that agency’s fiscal year, with respect to fiscal years 2000 and 2001.’’ SUBCHAPTER III—AUDITING AND SETTLING ACCOUNTS § 3521. Audits by agencies (a) Each account of an agency shall be audited administratively before being submitted to the Comptroller General. The head of each agency shall prescribe regulations for conducting the audit and designate a place at which the audit is to be conducted. However, a disbursing official of an executive agency may not administra- tively audit vouchers for which the official is re- sponsible. With the consent of the Comptroller General, the head of the agency may waive any part of an audit. (b) The head of an agency may prescribe a sta- tistical sampling procedure to audit vouchers of the agency when the head of the agency decides economies will result from using the procedure. The Comptroller General— (1) may prescribe the maximum amount of a voucher that may be audited under this sub- section; and (2) in reviewing the accounting system of the agency, shall evaluate the adequacy and effectiveness of the procedure. (c) A disbursing or certifying official acting in good faith under subsection (b) of this section is not liable for a payment or certification of a voucher not audited specifically because of the procedure prescribed under subsection (b) if the official and the head of the agency carry out diligently collection action the Comptroller General prescribes. (d) Subsections (b) and (c) of this section do not— (1) affect the liability, or authorize the re- lief, of a payee, beneficiary, or recipient of an illegal, improper, or incorrect payment; or (2) relieve a disbursing or certifying official, the head of an agency, or the Comptroller General of responsibility in carrying out col- lection action against a payee, beneficiary, or recipient. (e) Each financial statement prepared under section 3515 by an agency shall be audited in ac- cordance with applicable generally accepted government auditing standards— (1) in the case of an agency having an In- spector General appointed under chapter 4 of title 5, by the Inspector General or by an inde- pendent external auditor, as determined by the Inspector General of the agency; and (2) in any other case, by an independent ex- ternal auditor, as determined by the head of the agency. (f) For each audited financial statement re- quired under subsection (a) of section 3515 of this title, the person who audits the statement for purpose of subsection (e) of this section shall submit a report on the audit to the head of the agency and the Controller of the Office of Fed- eral Financial Management. A report under this subsection shall be prepared in accordance with generally accepted government auditing stand- ards. (g) The Comptroller General of the United States— (1) may review any audit of a financial state- ment conducted under this subsection by an Inspector General or an external auditor; (2) shall report to the Congress, the Director of the Office of Management and Budget, and the head of the agency which prepared the statement, regarding the results of the review and make any recommendation the Comp- troller General considers appropriate; and (3) may audit a financial statement prepared under section 3515 of this title at the discre- tion of the Comptroller General or at the re- quest of a committee of the Congress. An audit the Comptroller General performs under this subsection shall be in lieu of the audit otherwise required by subsection (e) of this section. Prior to performing such audit, the Comptroller General shall consult with the In- spector General of the agency which prepared the statement. (h) Each financial statement prepared by an executive agency for a fiscal year after fiscal year 1991 shall be audited in accordance with this section and the plan required by section 3512(a)(3)(B)(viii) of this title. (i)(1) If the Government Accountability Office audits any financial statement or related sched- ule which is prepared under section 3515 by an executive agency (or component thereof) for a fiscal year beginning on or after October 1, 2009, such executive agency (or component) shall re- imburse the Government Accountability Office for the cost of such audit, if the Government Ac- countability Office audited the statement or schedule of such executive agency (or compo- nent) for fiscal year 2007. (2) Any executive agency (or component there- of) that prepares a financial statement under section 3515 for a fiscal year beginning on or after October 1, 2009, and that requests, with the concurrence of the Inspector General of such agency, the Government Accountability Office to conduct the audit of such statement or any related schedule required by section 3521 may re- imburse the Government Accountability Office for the cost of such audit. (3) For the audits conducted under paragraphs (1) and (2), the Government Accountability Of- fice shall consult prior to the initiation of the audit with the relevant executive agency (or component) and the Inspector General of such agency on the scope, terms, and cost of such audit. (4) Any reimbursement under paragraph (1) or (2) shall be deposited to a special account in the Treasury and shall be available to the Govern- ment Accountability Office for such purposes and in such amounts as are specified in annual appropriations Acts. (Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 961; Pub. L. 101–576, title III, § 304(a), Nov. 15, 1990, 104