Platts Financial Accountability Legislation Signed into Law

The DHS Financial Accountability Act applies important management laws to the Department of Homeland Security

WASHINGTON, D.C. - President George W. Bush signed legislation today to ensure continued financial accountability at the Department of Homeland Security (DHS).  H.R. 4259, The DHS Financial Accountability Act, passed the House in July and the Senate in September.

 The bi-partisan measure, introduced earlier this year by Congressman Todd Platts (PA-19), Chairman of the House Government Efficiency and Financial Management Subcommittee, applies the provisions of the Chief Financial Officers Act of 1990 to DHS. 

 "The CFO Act is the cornerstone of Federal financial management.  By applying the provisions of the CFO Act to the Department of Homeland Security, we are requiring compliance with important financial management reforms," Platts said.  "Secretary Ridge and President Bush should be applauded for meeting most of the requirements voluntarily.  Now we have codified a structure for sound financial management that is mandatory, not optional, for future administrations.  I would also like to thank Senator Peter Fitzgerald of Illinois, who sponsored the Senate companion, for his leadership in ensuring passage of this legislation."

 This measure puts the CFO at DHS on equal footing with all other cabinet-level departments by requiring Senate confirmation.  The current CFO at the Department was appointed by the President without the advice and consent of the Senate, and, under the new law, may continue to serve for 180 days.  Whether the current CFO is re-nominated or a successor is appointed, either nominee would be subject to confirmation by the Senate.

 Additionally, the legislation requires an audit of the Department's internal accounting controls.  The DHS Financial Accountability Act increases the level of scrutiny by requiring an independent auditor to render an opinion on internal controls.  The language also establishes an Office of Program Analysis and Evaluation and requires both a Future Years Homeland Security Program and a Homeland Security Strategy.

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