Statement of Administration Policy: H.R. 5687 - Chief Financial Officers Act of 1990

(House)
(Conyers (D) Michigan)

The President supports legislation to improve the government's management. In particular, the Administration supports the establishment of a Deputy Director for Management and a Government-wide Controller in the Office of Management and Budget (OMB). It also supports statutory establishment of Chief Financial Officer positions in the each Department and major independent agency.

However, the Administration strongly opposes H.R. 5687 in its current form.

• Section 303 would provide supplementary authority to secure financial,, statements (as has been done for decades) and ensure that they are audited. The provision is unnecessary and could confuse the Administration's current effort to ensure financial integrity.
• Section 204 would establish a four-year term for the new position of Controller in OMB. It would also establish qualification requirements for appointment of the Controller and require the President to report his reasons for removal of the Controller to Congress. These conditions would constitute an unprecedented restraint on Presidential appointments within the Executive Office of the President. The qualification requirements and the reporting requirement also raise serious constitutional concerns.
• Section 201 would redesignate the Deputy Director of OMB Deputy Director for Budget. This redesignation would be misleading; the Deputy Director is alter eao to the Director on management as well as budget.

The Administration also opposes H.R. 5687 because it would:

• Designate the Deputy Director for Management as "Chief Financial Officer of the United States." This would create confusion between the responsibilities vested in the Treasury and OMB.
• Require a study on the development of accounting standards. The Secretary of the Treasury, the Comptroller General, and the Director of OMB have agreed to establish a Federal Accounting Standards Advisory Board which will address thes requirements, making a study unnecessary.
• Provide for a separate statement of appropriations for the Office of Federal Financial Management. Such a provision would unnecessarily complicate and bifurcate OMB's small budget. It is not necessary.