31 U.S.C. § 3511 — Prescribing accounting requirements and

Page 269 TITLE 31—MONEY AND FINANCE § 3511 1 Editorially supplied. Sec. 3555. Regulations; authority of Comptroller Gen- eral to verify assertions. 3556. Nonexclusivity of remedies; matters included in agency record. 3557. Expedited action in protests of public-private competitions. SUBCHAPTER VI—RECOVERY AUDITS 1 [3561. Repealed.] 3562. Disposition of recovered funds.1 [3563 to 3567. Repealed.] Editorial Notes AMENDMENTS 2010—Pub. L. 111–204, § 2(h)(6)(B)(i), July 22, 2010, 124 Stat. 2231, struck out subchapter VI heading ‘‘RECOV- ERY AUDITS’’ and items 3561 ‘‘Identification of errors made by executive agencies in payments to contractors and recovery of amounts erroneously paid’’, 3562 ‘‘Dis- position of recovered funds’’, 3563 ‘‘Sources of recovery services’’, 3564 ‘‘Management improvement programs’’, 3565 ‘‘Relationship to authority of Inspectors General’’, 3566 ‘‘Privacy protections’’, and 3567 ‘‘Definition of ex- ecutive agency’’. 2008—Pub. L. 110–417, [div. A], title X, § 1061(c)(3), Oct. 14, 2008, 122 Stat. 4613, struck out item 3557 ‘‘Expedited action in protests for public-private competitions’’, as added by Pub. L. 110–161. Pub. L. 110–181, div. A, title III, § 326(b)(2), Jan. 28, 2008, 122 Stat. 63, added item 3557 ‘‘Expedited action in protests of public-private competitions’’. 2007—Pub. L. 110–161, div. D, title VII, § 739(c)(1)(B)(ii), Dec. 26, 2007, 121 Stat. 2031, added item 3557. 2001—Pub. L. 107–107, div. A, title VIII, § 831(a)(2), Dec. 28, 2001, 115 Stat. 1188, added subchapter VI heading and items 3561 to 3567. 2000—Pub. L. 106–531, § 3(c), Nov. 22, 2000, 114 Stat. 2539, added item 3516. 1996—Pub. L. 104–316, title I, § 115(f)(2), Oct. 19, 1996, 110 Stat. 3834, struck out item 3531 ‘‘Property returns’’. 1990—Pub. L. 101–576, title III, §§ 301(b), 303(f), Nov. 15, 1990, 104 Stat. 2848, 2852, substituted ‘‘and other finan- cial management reports and plans’’ for ‘‘systems’’ in item 3512 and added item 3515. 1984—Pub. L. 98–369, div. B, title VII, § 2741(b), July 18, 1984, 98 Stat. 1203, added subchapter V heading and items 3551 to 3556. SUBCHAPTER I—GENERAL § 3501. Definition In this chapter, ‘‘executive agency’’ does not include (except in section 3513) a corporation, agency, or instrumentality subject to chapter 91 of this title. (Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 959; Pub. L. 107–107, div. A, title VIII, § 831(c), Dec. 28, 2001, 115 Stat. 1189; Pub. L. 111–204, § 2(h)(6)(B)(ii), July 22, 2010, 124 Stat. 2231.) HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 3501 ......... 31:65a. Sept. 12, 1950, ch. 946, § 118, 64 Stat. 837; Aug. 1, 1956, ch. 814, § 2(c), 70 Stat. 783. The words ‘‘As used . . . the term’’ are omitted as surplus. The words ‘‘means any executive department or independent establishment in the executive branch of the Government’’ are omitted because of section 102 of the revised title. The reference to 31:66d is unneces- sary because the defined term is not used in the re- statement of 31:66d in section 3514 of the revised title. The text of 31:65a(words after 4th comma) is omitted as unnecessary because of 39:410. Editorial Notes AMENDMENTS 2010—Pub. L. 111–204 struck out ‘‘and subchapter VI of this title’’ after ‘‘section 3513’’. 2001—Pub. L. 107–107 inserted ‘‘and subchapter VI’’ after ‘‘section 3513’’. Statutory Notes and Related Subsidiaries SHORT TITLE OF 2002 AMENDMENT Pub. L. 107–289, § 1, Nov. 7, 2002, 116 Stat. 2049, pro- vided that: ‘‘This Act [amending section 3515 of this title and enacting provisions set out as a note under section 3515 of this title] may be cited as the ‘Account- ability of Tax Dollars Act of 2002’.’’ SHORT TITLE OF 2000 AMENDMENT Pub. L. 106–531, § 1, Nov. 22, 2000, 114 Stat. 2537, pro- vided that: ‘‘This Act [enacting section 3516 of this title, amending sections 1116, 3515, and 3521 of this title, and enacting provisions set out as notes under sections 1116 and 3516 of this title] may be cited as the ‘Reports Consolidation Act of 2000’.’’ SUBCHAPTER II—ACCOUNTING REQUIRE- MENTS, SYSTEMS, AND INFORMATION § 3511. Prescribing accounting requirements and developing accounting systems (a) The Comptroller General shall prescribe the accounting principles, standards, and re- quirements that the head of each executive agency shall observe. Before prescribing the principles, standards, and requirements, the Comptroller General shall consult with the Sec- retary of the Treasury and the President on their accounting, financial reporting, and budg- etary needs, and shall consider the needs of the heads of the other executive agencies. (b) Requirements prescribed under subsection (a) of this section shall— (1) provide for suitable integration between the accounting process of each executive agen- cy and the accounting of the Department of the Treasury; (2) allow the head of each agency to carry out section 3512 of this title; and (3) provide a method of— (A) integrated accounting for the United States Government; (B) complete disclosure of the results of the financial operations of each agency and the Government; and (C) financial information and control the President and Congress require to carry out their responsibilities. (c) Consistent with subsections (a) and (b) of this section— (1) the authority of the Comptroller General continues under section 121(b) of title 40; and (2) the Comptroller General may prescribe the forms, systems, and procedures that the judicial branch of the Government (except the Supreme Court) shall observe. (d) The Comptroller General, the Secretary, and the President shall conduct a continuous program for improving accounting and financial reporting in the Government. Page 270 TITLE 31—MONEY AND FINANCE § 3512 1 So in original. Probably should not be capitalized. 2 So in original. Probably should be followed by ‘‘of’’. See Ref- erences in Text note below. (Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 959; Pub. L. 107–217, § 3(h)(5), Aug. 21, 2002, 116 Stat. 1299.) HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 3511(a) ..... 31:66(a)(1st sentence words before last comma). Sept. 12, 1950, ch. 946, §§ 111(f), 112(a), 64 Stat. 835; Reorg. Plan No. 2 of 1970, eff. July 1, 1970, § 102(a), 84 Stat. 2085. 3511(b) ..... 31:66(a)(1st sentence words after last comma, 2d sen- tence). 3511(c) ..... 31:49 June 10, 1921, ch. 18, § 309, 42 Stat. 25. 31:66(a)(3d, last sen- tences). 3511(d) ..... 31:65(f). In the section, the words ‘‘the head of’’ are added for consistency in the revised title and with other titles of the United States Code. In subsection (a), the words ‘‘of the United States’’ are omitted as surplus. The word ‘‘President’’ is sub- stituted for ‘‘Director of the Office of Management and Budget’’ because sections 101 and 102(a) of Reorganiza- tion Plan No. 2 of 1970 (eff. July 1, 1970, 84 Stat. 2085) re- designated the Bureau of the Budget as the Office of Management and Budget and transferred all functions of the Bureau to the President. In subsection (b)(3), the words ‘‘as a whole’’ and ‘‘re- spective’’ are omitted as surplus. Subsection (c)(2) is substituted for 31:49 and the words ‘‘and, to the extent he deems necessary, the authority vested in him by section 49 of this title’’ in 31:66(a) for clarity and consistency. H. Rept. 2556, 81st Cong. (1950), states that the Comptroller General will be able to pre- scribe appropriation and fund accounting systems under 31:49 ‘‘in terms of principles, standards and re- lated requirements rather than in terms of detailed forms and procedures’’. The reference to the judicial branch covers authority that the Comptroller General was given under 31:49 that applies to departments and establishments except the Supreme Court that was not superseded by the source provisions restated in sub- section (a) of this section. Editorial Notes AMENDMENTS 2002—Subsec. (c)(1). Pub. L. 107–217 substituted ‘‘sec- tion 121(b) of title 40’’ for ‘‘section 205(b) of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 486(b))’’. Statutory Notes and Related Subsidiaries ADOPTION OF CAPITAL ACCOUNTING STANDARDS Pub. L. 101–576, title III, § 307, Nov. 15, 1990, 104 Stat. 2855, provided that: ‘‘No capital accounting standard or principle, including any human capital standard or principle, shall be adopted for use in an executive de- partment or agency until such standard has been re- ported to the Congress and a period of 45 days of con- tinuous session of the Congress has expired.’’ § 3512. Executive agency accounting and other fi- nancial management reports and plans (a)(1) The Director of the Office of Manage- ment and Budget shall prepare and submit to the appropriate committees of the Congress and make available on a website described in section 1122 a financial management status report and a governmentwide 5-year financial management plan. (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; (B) a summary of the most recently com- pleted financial statements— (i) of Federal agencies under section 3515 of this title; and (ii) of Government corporations; (C) a summary of the most recently com- pleted financial statement audits and re- ports— (i) of Federal agencies under section 3521(e) and (f) of this title; and (ii) of Government corporations; (D) a summary of reports on internal ac- counting and administrative control systems submitted to the President and the Congress under the amendments made by the Federal Managers’ Financial Integrity Act of 1982 (Public Law 97–255); (E) a listing of agencies whose financial management systems do not comply substan- tially with the requirements of Section 1 3(a) 2 the Federal Financial Management Improve- ment Act of 1996, and a summary statement of the efforts underway to remedy the non- compliance; and (F) any other information the Director con- siders appropriate to fully inform the Congress regarding the financial management of the Federal Government. (3)(A) A governmentwide 5-year financial man- agement plan under this subsection shall de- scribe the activities the Director, the Deputy Director for Management, the Controller of the Office of Federal Financial Management, and agency Chief Financial Officers shall conduct over the next 5 fiscal years to improve the finan- cial management of the Federal Government. (B) Each governmentwide 5-year financial management plan prepared under this sub- section shall— (i) describe the existing financial manage- ment structure and any changes needed to es- tablish an integrated financial management system; (ii) be consistent with applicable accounting principles, standards, and requirements; (iii) provide a strategy for developing and in- tegrating individual agency accounting, finan- cial information, and other financial manage- ment systems to ensure adequacy, consist- ency, and timeliness of financial information; (iv) identify and make proposals to elimi- nate duplicative and unnecessary systems, in- cluding encouraging agencies to share systems which have sufficient capacity to perform the functions needed; (v) identify projects to bring existing sys- tems into compliance with the applicable standards and requirements; (vi) contain milestones for equipment acqui- sitions and other actions necessary to imple- ment the 5-year plan consistent with the re- quirements of this section; (vii) identify financial management per- sonnel needs and actions to ensure those needs are met; (viii) include a plan for ensuring the annual audit of financial statements of executive