2000
<PRE>        S.2170

                       One Hundred Third Congress

                                 of the

                        United States of America


                          AT THE SECOND SESSION

          Begun and held at the City of Washington on Tuesday,
 the twenty-fifth day of January, one thousand nine hundred and ninety-
                                  four


                                 An Act

  
 
  To provide a more effective, efficient, and responsive Government.

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

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Government 
Management Reform Act of 1994''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:
Sec. 1. Short title and table of contents.

                       TITLE I--LIMITATION ON PAY

Sec. 101. Limitation on certain annual pay adjustments.

                   TITLE II--HUMAN RESOURCE MANAGEMENT

Sec. 201. SES annual leave accumulation.

               TITLE III--STREAMLINING MANAGEMENT CONTROL

Sec. 301. Authority to increase efficiency in reporting to Congress.

                     TITLE IV--FINANCIAL MANAGEMENT

Sec. 401. Short title.
Sec. 402. Electronic payments.
Sec. 403. Franchise fund pilot programs.
Sec. 404. Simplification of management reporting process.
Sec. 405. Annual financial reports.

                       TITLE I--LIMITATION ON PAY

SEC. 101. LIMITATION ON CERTAIN ANNUAL PAY ADJUSTMENTS.

    Effective as of December 31, 1994--
        (1) section 601(a)(2) of the Legislative Reorganization Act of 
    1946 (2 U.S.C. 31(2)) is amended--
            (A) by striking out ``(2) Effective'' and inserting in lieu 
        thereof ``(2)(A) Subject to subparagraph (B), effective''; and
            (B) by adding at the end thereof the following:
    ``(B) In no event shall the percentage adjustment taking effect 
under subparagraph (A) in any calendar year (before rounding), in any 
rate of pay, exceed the percentage adjustment taking effect in such 
calendar year under section 5303 of title 5, United States Code, in the 
rates of pay under the General Schedule.'';
        (2) section 104 of title 3, United States Code, is amended--
            (A) in the first sentence by inserting ``(a)'' before 
        ``The'';
            (B) in the second sentence by striking out ``Effective'' 
        and inserting in lieu thereof ``Subject to subsection (b), 
        effective''; and
            (C) by adding at the end thereof the following:
    ``(b) In no event shall the percentage adjustment taking effect 
under the second and third sentences of subsection (a) in any calendar 
year (before rounding) exceed the percentage adjustment taking effect 
in such calendar year under section 5303 of title 5 in the rates of pay 
under the General Schedule.'';
        (3) section 5318 of title 5, United States Code, is amended--
            (A) in the first sentence by striking out ``Effective'' and 
        inserting in lieu thereof ``(a) Subject to subsection (b), 
        effective''; and
            (B) by adding at the end thereof the following:
    ``(b) In no event shall the percentage adjustment taking effect 
under subsection (a) in any calendar year (before rounding), in any 
rate of pay, exceed the percentage adjustment taking effect in such 
calendar year under section 5303 in the rates of pay under the General 
Schedule.''; and
        (4) section 461(a) of title 28, United States Code, is 
    amended--
            (A) by striking out ``(a) Effective'' and inserting in lieu 
        thereof ``(a)(1) Subject to paragraph (2), effective''; and
            (B) by adding at the end thereof the following:
    ``(2) In no event shall the percentage adjustment taking effect 
under paragraph (1) in any calendar year (before rounding), in any 
salary rate, exceed the percentage adjustment taking effect in such 
calendar year under section 5303 of title 5 in the rates of pay under 
the General Schedule.''.

                  TITLE II--HUMAN RESOURCE MANAGEMENT

SEC. 201. SES ANNUAL LEAVE ACCUMULATION.

    (a) In General.--Effective on the first day of the first applicable 
pay period beginning after the date of the enactment of this Act, 
subsection (f) of section 6304 of title 5, United States Code, is 
amended to read as follows:
    ``(f)(1) This subsection applies with respect to annual leave 
accrued by an individual while serving in a position in--
        ``(A) the Senior Executive Service;
        ``(B) the Senior Foreign Service;
        ``(C) the Defense Intelligence Senior Executive Service;
        ``(D) the Senior Cryptologic Executive Service; or
        ``(E) the Federal Bureau of Investigation and Drug Enforcement 
    Administration Senior Executive Service.
    ``(2) For purposes of applying any limitation on accumulation under 
this section with respect to any annual leave described in paragraph 
(1)--
        ``(A) `30 days' in subsection (a) shall be deemed to read `90 
    days'; and
        ``(B) `45 days' in subsection (b) shall be deemed to read `90 
    days'.''.
    (b) Use of Excess Leave.--Notwithstanding the amendment made by 
subsection (a), in the case of an employee who, on the effective date 
of subsection (a), is subject to subsection (f) of section 6304 of 
title 5, United States Code, and who has to such employee's credit 
annual leave in excess of the maximum accumulation otherwise permitted 
by subsection (a) or (b) of section 6304 (determined applying the 
amendment made by subsection (a)), such excess annual leave shall 
remain to the credit of the employee and be subject to reduction, in 
the same manner as provided in subsection (c) of section 6304.

               TITLE III--STREAMLINING MANAGEMENT CONTROL

SEC. 301. AUTHORITY TO INCREASE EFFICIENCY IN REPORTING TO CONGRESS.

    (a) Purpose.--The purpose of this title is to improve the 
efficiency of executive branch performance in implementing statutory 
requirements for reports to Congress and committees of Congress such as 
the elimination or consolidation of duplicative or obsolete reporting 
requirements and adjustments to deadlines that shall provide for more 
efficient workload distribution or improve the quality of reports.
    (b) Authority of the Director.--The Director of the Office of 
Management and Budget may publish annually in the budget submitted by 
the President to the Congress, recommendations for consolidation, 
elimination, or adjustments in frequency and due dates of statutorily 
required periodic reports to the Congress or committees of Congress. 
For each recommendation, the Director shall provide an individualized 
statement of the reasons that support the recommendation. In addition, 
for each report for which a recommendation is made, the Director shall 
state with specificity the exact consolidation, elimination, or 
adjustment in frequency or due date that is recommended.
    (c) Recommendations.--The Director's recommendations shall be 
consistent with the purpose stated in subsection (a).
    (d) Consultation.--Before the publication of the recommendations 
under subsection (b), the Director or his designee shall consult with 
the appropriate congressional committees concerning the 
recommendations.

                     TITLE IV--FINANCIAL MANAGEMENT

SEC. 401. SHORT TITLE.

    This title may be cited as the ``Federal Financial Management Act 
of 1994''.

SEC. 402. ELECTRONIC PAYMENTS.

    (a) In General.--Section 3332 of title 31, United States Code, is 
amended to read as follows:

``Sec. 3332. Required direct deposit

    ``(a)(1) Notwithstanding any other provision of law, all Federal 
wage, salary, and retirement payments shall be paid to recipients of 
such payments by electronic funds transfer, unless another method has 
been determined by the Secretary of the Treasury to be appropriate.
    ``(2) Each recipient of Federal wage, salary, or retirement 
payments shall designate one or more financial institutions or other 
authorized payment agents and provide th
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e payment certifying or 
authorizing agency information necessary for the recipient to receive 
electronic funds transfer payments through each institution so 
designated.
    ``(b)(1) The head of each agency shall waive the requirements of 
subsection (a) of this section for a recipient of Federal wage, salary, 
or retirement payments authorized or certified by the agency upon 
written request by such recipient.
    ``(2) Federal wage, salary, or retirement payments shall be paid to 
any recipient granted a waiver under paragraph (1) of this subsection 
by any method determined appropriate by the Secretary of the Treasury.
    ``(c)(1) The Secretary of the Treasury may waive the requirements 
of subsection (a) of this section for any group of recipients upon 
request by the head of an agency under standards prescribed by the 
Secretary of the Treasury.
    ``(2) Federal wage, salary, or retirement payments shall be paid to 
any member of a group granted a waiver under paragraph (1) of this 
subsection by any method determined appropriate by the Secretary of the 
Treasury.
    ``(d) This section shall apply only to recipients of Federal wage 
or salary payments who begin to receive such payments on or after 
January 1, 1995, and recipients of Federal retirement payments who 
begin to receive such payments on or after January 1, 1995.
    ``(e) The crediting of the amount of a payment to the appropriate 
account on the books of a financial institution or other authorized 
payment agent designated by a payment recipient under this section 
shall constitute a full acquittance to the United States for the amount 
of the payment.''.
    (b) Technical and Conforming Amendment.--The table of sections for 
chapter 33 of title 31, United States Code, is amended by amending the 
item for section 3332 to read:
``3332. Required direct deposit.''.

SEC. 403. FRANCHISE FUND PILOT PROGRAMS.

    (a) Establishment.--There is authorized to be established on a 
pilot program basis in each of six executive agencies a franchise fund. 
The Director of the Office of Management and Budget, after consultation 
with the chairman and ranking members of the Committees on 
Appropriations and Governmental Affairs of the Senate, and the 
Committees on Appropriations and Government Operations of the House of 
Representatives, shall designate the agencies.
    (b) Uses.--Each such fund may provide, consistent with guidelines 
established by the Director of the Office of Management and Budget, 
such common administrative support services to the agency and to other 
agencies as the head of such agency, with the concurrence of the 
Director, determines can be provided more efficiently through such a 
fund than by other means. To provide such services, each such fund is 
authorized to acquire the capital equipment, automated data processing 
systems, and financial management and management information systems 
needed. Services shall be provided by such funds on a competitive 
basis.
    (c) Funding.--(1) There are authorized to be appropriated to the 
franchise fund of each agency designated under subsection (a) such 
funds as are necessary to carry out the purposes of the fund, to remain 
available until expended. To the extent that unexpended balances remain 
available in other accounts for the purposes to be carried out by the 
fund, the head of the agency may transfer such balances to the fund.
    (2) Fees for services shall be established by the head of the 
agency at a level to cover the total estimated costs of providing such 
services. Such fees shall be deposited in the agency's fund to remain 
available until expended, and may be used to carry out the purposes of 
the fund.
    (3) Existing inventories, including inventories on order, 
equipment, and other assets or liabilities pertaining to the purposes 
of the fund may be transferred to the fund.
    (d) Report on Pilot Programs.--Within 6 months after the end of 
fiscal year 1997, the Director of the Office of Management and Budget 
shall forward a report on the results of the pilot programs to the 
Committees on Appropriations of the Senate and of the House of 
Representatives, and to the Committee on Governmental Affairs of the 
Senate and the Committee on Government Operations of the House of 
Representatives. The report shall contain the financial and program 
performance results of the pilot programs, including recommendations 
for--
        (1) the structure of the fund;
        (2) the composition of the funding mechanism;
        (3) the capacity of the fund to promote competition; and
        (4) the desirability of extending the application and 
    implementation of franchise funds to other Federal agencies.
    (e) Procurement.--Nothing in this section shall be construed as 
relieving any agency of any duty under applicable procurement laws.
    (f) Termination.--The provisions of this section shall expire on 
October 1, 1999.

SEC. 404. SIMPLIFICATION OF MANAGEMENT REPORTING PROCESS.

    (a) In General.--To improve the efficiency of executive branch 
performance in implementing statutory requirements for financial 
management reporting to the Congress and its committees, the Director 
of the Office of Management and Budget may adjust the frequency and due 
dates of or consolidate any statutorily required reports of agencies to 
the Office of Management and Budget or the President and of agencies or 
the Office of Management and Budget to the Congress under any laws for 
which the Office of Management and Budget has financial management 
responsibility, including--
        (1) chapters 5, 9, 11, 33, 35, 37, 39, 75, and 91 of title 31, 
    United States Code;
        (2) the Federal Civil Penalties Inflation Adjustment Act of 
    1990 (28 U.S.C. 2461 note; Public Law 101-410; 104 Stat. 890).
    (b) Application.--The authority provided in subsection (a) shall 
apply only to reports of agencies to the Office of Management and 
Budget or the President and of agencies or the Office of Management and 
Budget to the Congress required by statute to be submitted between 
January 1, 1995, and September 30, 1997.
    (c) Adjustments in Reporting.--The Director may consolidate or 
adjust the frequency and due dates of any statutorily required reports 
under subsections (a) and (b) only after--
        (1) consultation with the Chairman of the Senate Committee on 
    Governmental Affairs and the Chairman of the House of 
    Representatives Committee on Government Operations; and
        (2) written notification to the Congress, no later than 
    February 8 of each fiscal year covered under subsection (b) for 
    those reports required to be submitted during that fiscal year.

SEC. 405. ANNUAL FINANCIAL REPORTS.

    (a) Financial Statements.--Section 3515 of title 31, United States 
Code, is amended to read as follows:

``Sec. 3515. Financial statements of agencies

    ``(a) Not later than March 1 of 1997 and each year thereafter, the 
head of each executive agency identified in section 901(b) of this 
title shall prepare and submit to the Director of the Office of 
Management and Budget an audited financial statement for the preceding 
fiscal year, covering all accounts and associated activities of each 
office, bureau, and activity of the agency.
    ``(b) Each audited financial statement of an executive agency under 
this section shall reflect--
        ``(1) the overall financial position of the offices, bureaus, 
    and activities covered by the statement, including assets and 
    liabilities thereof; and
        ``(2) results of operations of those offices, bureaus, and 
    activities.
    ``(c) The Director of the Office of Management and Budget shall 
identify components of executive agencies that shall be required to 
have audited financial statements meeting the requirements of 
subsection (b).
    ``(d) The Director of the Office of Management and Budget shall 
prescribe the form and content of the financial statements of executive 
agencies under this section, consistent with applicable accounting and 
financial reporting principles, standards, and requirements.
    ``(e) The Director 
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of the Office of Management and Budget may waive 
the application of all or part of subsection (a) for financial 
statements required for fiscal years 1996 and 1997.
    ``(f) Not later than March 1 of 1995 and 1996, the head of each 
executive agency identified in section 901(b) of this title and 
designated by the Director of the Office of Management and Budget shall 
prepare and submit to the Director of the Office of Management and 
Budget an audited financial statement for the preceding fiscal year, 
covering all accounts and associated activities of each office, bureau, 
and activity of the agency.
    ``(g) Not later than March 31 of 1995 and 1996, for executive 
agencies not designated by the Director of the Office of Management and 
Budget under subsection (f), the head of each executive agency 
identified in section 901(b) of this title shall prepare and submit to 
the Director of the Office of Management and Budget a financial 
statement for the preceding fiscal year, covering--
        ``(1) each revolving fund and trust fund of the agency; and
        ``(2) to the extent practicable, the accounts of each office, 
    bureau, and activity of the agency which performed substantial 
    commercial functions during the preceding fiscal year.
    ``(h) For purposes of subsection (g), the term `commercial 
functions' includes buying and leasing of real estate, providing 
insurance, making loans and loan guarantees, and other credit programs 
and any activity involving the provision of a service or thing for 
which a fee, royalty, rent, or other charge is imposed by an agency for 
services and things of value it provides.''.
    (b) Audits by Agencies.--Subsection 3521(f) of title 31, United 
States Code, is amended to read as follows:
    ``(f)(1) For each audited financial statement required under 
subsections (a) and (f) 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. A report 
under this subsection shall be prepared in accordance with generally 
accepted government auditing standards.
    ``(2) Not later than June 30 following the fiscal year for which a 
financial statement is submitted under subsection (g) 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. A report under this subsection shall be 
prepared in accordance with generally accepted government auditing 
standards.''.
    (c) Governmentwide Financial Statement.--Section 331 of title 31, 
United States Code, is amended by adding the following new subsection:
    ``(e)(1) Not later than March 31 of 1998 and each year thereafter, 
the Secretary of the Treasury, in coordination with the Director of the 
Office of Management and Budget, shall annually prepare and submit to 
the President and the Congress an audited financial statement for the 
preceding fiscal year, covering all accounts and associated activities 
of the executive branch of the United States Government. The financial 
statement shall reflect the overall financial position, including 
assets and liabilities, and results of operations of the executive 
branch of the United States Government, and shall be prepared in 
accordance with the form and content requirements set forth by the 
Director of the Office of Management and Budget.
    ``(2) The Comptroller General of the United States shall audit the 
financial statement required by this section.''.







                               Speaker of the House of Representatives.







                            Vice President of the United States and    
                                               President of the Senate.

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