Federal Management Reorganization and Cost Control Act of 1986

Summary

Federal Management Reorganization and Cost Control Act of 1986 - Title I: Improving Federal Management - Establishes the Office of Federal Management in the Executive Office of the President. Declares that such Office is composed of the Office of Information and Regulatory Affairs (transferred to such Office), the Office of Federal Procurement Policy (transferred to such Office), and the Office of Financial Systems (established by this Act). Declares that the Office of Federal Management shall be headed by a Director and Deputy Director, both appointed by the President, by and with the advice and consent of the Senate. Sets forth the functions of the Director with respect to the development and implementation of Federal management policies. Declares that the Office of Financial Systems shall be headed by an Administrator, who shall be appointed by the President, by and with the advice and consent of the Senate. Designates the Administrator as the principal advisor to the President and the Director with respect to Federal financial management policy. Directs the Administrator to prepare and transmit a five-year plan for the financial management activities of the Government to the Congress, the Director, and the Comptroller General. Requires the Administrator to revise such plan annually. Directs the Comptroller General to transmit to the Congress an analysis and comments on such plan. Establishes the position of agency controller in each executive agency to conduct, supervise, and coordinate agency financial management functions. Transfers to the Director all functions of the Director of Management and Budget and sets forth other transition provisions. Redesignates the Office of Management and Budget as the Office of Federal Budget. Authorizes appropriations as necessary to carry out this title. Directs the President to submit an annual management report on the executive branch with the submission of each Federal budget. Directs the Comptroller General to transmit to the Congress an analysis of such report. Title II: Accounting and Internal Control Systems - Requires the President to include a statement in the budget on the extent to which its information was generated or supported by agency accounting systems that conform to the principles and standards prescribed by the Comptroller General and related requirements of the Administrator of the Office of Financial Systems. Requires the Administrator to determine whether the accounting and internal control systems of each executive agency substantially comply with the principles and standards set by the Comptroller General. Makes such systems subject to the direction and supervision of the Administrator, if two years after the effective date of this Act, the systems are not in compliance. Title III: Agency Financial Statements - Requires the Comptroller General to consult with the Administrator in prescribing accounting standards and to provide a method for agencies to prepare financial statements. Requires executive agencies to have such prepared statements by December 31 of each year. Requires financial and compliance audits of such statements for FY 1990 and 1991 and biennially thereafter, by the agency Inspector General, an independent internal or external auditor, or the Comptroller General (when deemed appropriate or upon the request of a congressional committee). Requires reports on such audits to be submitted to the head of the agency, the Congress, the President, the Administrator, and the Comptroller General. Directs the Administrator to submit a plan to the Congress for ensuring the completion of audits required for FY 1991. Sets forth provisions for annual audits of Government corporations by independent external auditors (in lieu of the Comptroller General's audit once every three years). Requires the submission of annual financial reports to the Congress, the President, the Administrator, the Secretary of the Treasury, and the Comptroller General. Title IV: Cash Management - Sets forth provisions regarding intergovernmental financing. Provides for the agency disbursement of Federal funds in accordance with regulations prescribed by the Secretary of the Treasury, in consultation with the Administrator. Authorizes the Secretary to issue regulations requiring a State to pay interest on funds from the time of deposit until disbursement. Requires the Government to pay interest to a State that disburses its own funds under a Federal program, unless such disbursements are the result of delays in the State program. Establishes the Intergovernmental Interest Fund for amounts received as payments, and to make payments, under this title. Amends the Social Security Act to require that Social Security withholding for State and local employees be remitted within three banking days of the end of the pay period (currently, States are allowed a 15-day period). Authorizes the Secretary of the Treasury to require that wages and salaries of employees earning in excess of $20,000 be paid by electronic transfer. Authorizes the Secretary to allow the conversion of a payment from one method to another without an employee's written request if the employee is notified in writing and given 30 days to respond. Authorizes the Secretary to expand the use of electronic funds transfers to benefits and other payments, as long as recipients have the option of receiving a check. Directs the Secretary to study and make recommendations concerning standards for the establishment of lockbox systems for executive agencies. Defines such a system as the use of locked post office boxes for the receipt of payments. Sets forth a schedule for the implementation of such a system. Title V: Credit Management - Requires all legislative proposals to enact new, or amend existing, credit programs to contain a statement of any subsidies in direct or guaranteed loan programs. Requires that interest rates in new direct loan programs: (1) be related to market rates for comparable private sector loan programs; and (2) be adjusted annually to reflect changes in the private sector rates. Requires that loan origination and application fees be assessed in loan programs to defray administrative costs. Declares that loan and loan guarantee funds shall not be made available to applicants who have defaulted on a Federal loan or loan guarantee unless: (1) the new loan is necessary to protect Government interests; (2) the default has been discharged under Federal bankruptcy laws; or (3) the default has been cured. Describes default and acceleration clauses which shall be required for loan contracts. Directs the President to provide for a study to determine which direct loan programs could be carried out by private lending institutions without Government guarantees. Requires a report to the Congress on the results of such study with recommendations. Directs the Administrator to establish Federal credit management policies and promulgate regulations applicable to this title. Requires such regulations to include established credit practices of the private sector. Requires each agency which operates credit programs, as part of its budget request, to identify collection targets so that collected amounts may be predicted and used as a source of program funding. Provides for reducing program funding by the amount an agency fails to collect and increasing such funding for an agency that exceeds its collection targets. Requires each agency to develop and report to the Congress delinquency and default rate standards for loan and loan guarantee programs. Directs the Secretary of the Treasury to develop and report to the Congress a formula for reducing an agency's loan authority in accordance with such agency's exceeding the rate standards. Requires the Inspector General of each agency to audit its credit management and debt collection systems. Title VI: Federal Information Policy - Revises current provisions regarding the management of Federal information resources and the coordination of Federal information policy. Provides for the presidential nomination and Senate confirmation of the Administrator of the Office of Information and Regulatory Affairs. Requires the Director of the Office of Federal Management to appoint a chief statistician. Expands the functions of the Director to include guidance of agency analyses of their investments in information technology resources and guidance on the use of information technology. Requires each agency to designate a senior official to carry out the responsibilities under this title for implementing agency information management functions. Requires the annual report by the Director of the Office of Federal Management to address agency information management initiatives and statistical policy and coordination functions. Requires the Director to submit a report to the Congress, at the time the President submits the budget for FY 1988, on funds requested for information resources management. Authorizes appropriations to carry out the provisions of this title for FY 1986 through 1989. Amends the Federal Property and Administrative Services Act of 1949 to establish the Information Technology Fund, consisting of the capital and assets of the Federal telecommunications fund and of the automatic data processing fund, and certain supplies and equipment transferred to the Administrator of General Services. Sets forth the authority of the Administrator under the Fund.

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2 official files

• Reported to Senate with amendment(s)

  summary · EN · 31 July 1986

  Open at official source

• Introduced in Senate

  summary · EN · 26 March 1986

  Open at official source

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