Official Name: The Agency Audit Act of 1960Nickname: The AAA
Overview: A bill to ensure that every major agency of the Federal Government undergoes and passes a clean audit opinion on its financial statements.Sponsor: Rep. Thomas C. Byrne [D-NY-7]
Co-Sponsors: (Here is where you put who else supports the bill, do an OOC poll to figure out what other chars would like to hop on!)
Section 1: FINDINGS
(a) The Congress finds the following:(1) General management functions of the Bureau of the Budget need to be significantly enhanced to improve the efficiency and effectiveness of the Federal Government;
(2) Financial management functions of the Bureau of the Budget need to be significantly enhanced to provide overall direction and leadership in the development of a modern federal financial management structure and associated systems;
(3) Billions of dollars are lost each year through fraud, waste, abuse, and mismanagement among the hundreds of programs in the Federal Government;
(4) These losses could be significantly decreased by improved management, including improved central coordination of internal controls and financial accounting;
(5) The Federal Government is in great need of fundamental reform in financial management requirements and practices as financial management systems are obsolete and inefficient, and do not provide complete, consistent, reliable, and timely information;
(6) Current financial reporting practices of the Federal Government do not accurately disclose the current and probable future cost of operating and investment decisions, including the future need for cash or other resources, do not permit adequate comparison of actual costs among executive agencies, and do not provide the timely information required for efficient management of programs.
(b) The purposes of this Act are the following:(1) Bring more effective general and financial management practices to the Federal Government through statutory provisions which would establish in the Bureau of the Budget a Deputy Director for Management, establish an Office of Federal Financial Management headed by a Controller, and designate a Chief Financial Officer in each executive department and in each major agency of the Federal Government;
(2) Provide for improvement, in each agency, of systems of accounting, financial management, and internal controls to assure the issuance of reliable financial information and to deter fraud, waste, and abuse of Government resources;
(3) Provide for the production of complete, reliable, consistent and timely financial information for use by the executive branch and the Congress in the financing, management, and evaluation of Federal programs;
(4) Recover amounts, for the purposes of deficit reduction, from the Department of Defense should it fail to achieve an unqualified opinion on its full financial statement by the Bureau of the Budget.
Section 2: ESTABLISHMENT OF CHIEF FINANCIAL OFFICERS
(a) The Bureau henceforth shall have a Director for Management appointed by the President, by and with the advice and consent of the Senate. The Deputy Director for Management shall be the chief official responsible for financial management in the United States Government;
(b) FUNCTIONS OF DIRECTOR FOR MANAGEMENT—. The Director for Management shall establish governmentwide financial management policies for executive agencies and shall perform the following financial management functions:(1) Perform all functions, including all functions delegated by the President, relating to financial management.
(2) Provide overall direction and leadership to the executive branch on financial management matters by establishing financial management policies and requirements, and by monitoring the establishment and operation of Federal Government financial management systems.
(3) Review agency budget requests for financial management systems and operations, and advise on the resources required to develop and effectively operate and maintain Federal Government financial management systems and to correct major deficiencies in such systems.
(4) Review and, where appropriate, recommend to the Director changes to the budget and legislative proposals of agencies to ensure that they are in accordance with financial management plans of the Office of Management and Budget.
(c) Establishment of agency Chief Financial Officers.— There shall be within each agency of the Federal Government an agency Chief Financial Officer. Each agency Chief Financial Officer shall—(1) Be appointed by the President, by and with the advice and consent of the Senate; or
(2) Be designated by the President, in consultation with the head of the agency, from among officials of the agency who are required by law to be so appointed;
(3) Be appointed or designated, as applicable, from among individuals who possess demonstrated ability in general management of, and knowledge of and extensive practical experience in financial management practices in large governmental or business entities.
(4) The agencies referred to in this section are the following:
(A) The Department of Agriculture.
(B) The Department of Commerce.
(C) The Department of Defense.
(D) The Department of Health and Human Services.
(E) The Department of the Interior.
(F) The Department of Justice.
(G) The Department of Labor.
(H) The Department of State.
(I) The Department of the Treasury.
(J) The Veterans Administration.
(K) The National Aeronautics and Space Administration.
(d) Authority and functions of agency Chief Financial Officers.— An agency Chief Financial Officer shall:(1) report directly to the head of the agency regarding financial management matters;
(2) oversee all financial management activities relating to the programs and operations of the agency;
(3) develop and maintain an integrated agency accounting and financial management system, including financial reporing and internal controls, which—
(A) complies with applicable accounting principles, standards, and requirements, and internal control stand- ards;
(B) complies with such policies and requirements as may be prescribed by the Director of the Office of Management and Budget;
(C) complies with any other requirements applicable to such systems; and
(D) provides for complete, reliable, consistent, and timely information which is prepared on a uniform basis and which is responsive to the financial information needs of agency management; the development and reporting of cost information; the integration of accounting and budgeting information; and the systematic measurement of performance;
(4) direct, manage, and provide policy guidance and oversight of agency financial management personnel, activities, and operations, including:
(A) the preparation and annual revision of an agency plan to implement the 5-year financial management plan prepared by the Director of the Bureau of the Budget;
(B) the development of agency financial management budgets;
(C) the recruitment, selection, and training of personnel to carry out agency financial management functions;
(D) the approval and management of agency financial management systems design or enhancement projects;
(E) the implementation of agency asset management systems, including systems for cash management, credit management, debt collection, and property and inventory management and control.
(5) prepare and transmit, by not later than 60 days after the submission of the audit report required by this Act, an annual report to the agency head and the Director of the Bureau of the Budget, which shall include—
(A) a description and analysis of the status of financial management of the agency;
(B) the annual financial statements prepared;
(C) the audit report transmitted to the head of the agency;
(D) a summary of the reports on internal accounting and administrative control systems submitted to the President and the Congress;
(E) other information the head of the agency considers appropriate to fully inform the President and the Congress concerning the financial management of the agency.
Section 3: DEPARTMENT OF DEFENSE SPENDING REDUCTIONS IN THE ABSENCE OF AN UNQUALIFIED AUDIT OPINION
(a) If during any fiscal year after fiscal year 1960, the Secretary of Defense determines that a department, agency, or other element of the Department of Defense has not achieved an unqualified opinion on its full financial statements for the calendar year ending during such fiscal year--(1) the amount available to such department, agency, or element for the fiscal year in which such determination is made shall be equal to the amount otherwise authorized to be appropriated minus 1.0 percent;
(2) the amount unavailable to such department, agency, or element for that fiscal year pursuant to paragraph (1) shall be applied on a proportional basis against each program, project, and activity of such department, agency, or element in that fiscal year; and
(3) the Secretary shall deposit in the general fund of the Treasury for purposes of deficit reduction all amounts unavailable to departments, agencies, and elements of the Department in the fiscal year pursuant to determinations made under paragraph (1).
This bill is then honorably presented to the House of Representative for consideration in order to ensure clean audits for every federal agency and is backed by Rep. Byrne on Jan 6th, 1960.
Any cosponsorship appetite for this? Pretty non-controversial, basically establishes an audit process for every federal agency in the government (since the OMB didn't technically exist yet as it does today). There is a small catch though but I'll let any potential cosponsors find that for themselves...






