Government Reform Committee Approves H.R. 2886

The Department of Homeland Security Financial Accountability Act

Washington, D.C. - The Government Reform Committee today approved a bill to give Congress the authority to demand financial accountability at the Department of Homeland Security. The measure, H.R. 2886, passed by voice vote.

On July 24, 2003, Chairman Todd Russell Platts (R-Pa.), along with Chairman Tom Davis (R-Va.), Ranking Member Henry Waxman (D-Ca.) and other members of the Government Reform Committee introduced H.R. 2886, The Department of Homeland Security Financial Accountability Act, which would apply the provisions of the Chief Financial Officers Act of 1990 to DHS.

Currently, all cabinet-level departments-with the exception of DHS-are covered by the CFO Act, the 1990 law that made sweeping changes to government financial management. Key provisions of the CFO Act include the requirement for a Senate-confirmed CFO reporting directly to the head of each agency.

H.R. 2886 would raise the CFO at DHS to equal footing with all other cabinet-level departments by requiring Senate confirmation and elevating the position in the organizational structure so that the CFO would report directly to the Secretary of Homeland Security. The current CFO at the Department is presidentially appointed without Senate confirmation and does not report directly to the Secretary.

"The CFO Act is the cornerstone of Federal financial management. If we do not apply the provisions of the CFO Act to the Department of Homeland Security, it sets a dangerous precedent by lowering the standing of the CFO within the Department and not requiring compliance with important financial management reforms. This bill remedies this situation and puts the CFO at DHS on par with all other cabinet-level departments," said Platts. "This bill codifies a structure for sound financial management that is mandatory, not optional for future administrations."

Additionally, H.R. 2886 will require an audit of the Department's internal accounting controls. Current guidelines require agency management to report on internal controls in conjunction with annual financial audits. H.R. 2886 would increase the level of scrutiny by requiring an independent auditor to render an opinion.

Platts said, "Having an auditor issue an opinion on internal controls would help uncover inherent weaknesses and address problems as business practices are being established-before they become ingrained. Strong internal controls are essential to sound management."

"Now is not the time to dilute the importance of the CFO position, and we should not require less financial accountability at DHS than we do at other cabinet-level departments," Platts continued. "DHS faces many daunting challenges, and these challenges will require strong leadership and a commitment from top-level management to overcome. Financial management at DHS must be of the highest priority. Without the requirements spelled out in H.R. 2886, this will not occur."

"It is important to note that under the leadership of President Bush and Secretary Ridge the Department has shown a determination to be fiscally responsible, and they are to be commended for this approach. However, future administrations are not bound by law to follow the same path of fiscal responsibility. This bill rectifies that situation by codifying compliance with the provisions of the CFO Act."