Page:United States Statutes at Large Volume 110 Part 4.djvu/553

 PUBLIC LAW 104-208—SEPT. 30, 1996 110 STAT. 3009-390 Government, agencies must incorporate accounting standards and reporting objectives established for the Federal Government into their financial management systems so that all the assets and liabilities, revenues, and expenditures or expenses, and the full costs of programs and activities of the Federal Government can be consistently and accurately recorded, monitored, and uniformly reported throughout the Federal Government. (6) Since its establishment in October 1990, the Federal Accounting Standards Advisory Board (hereinafter referred to as the "FASAB") has made substantial progress toward developing and recommending a comprehensive set of accounting concepts and standards for the Federal Government. When the accounting concepts and standards developed by FASAB are incorporated into Federal financial management systems, agencies will be able to provide cost and financial information that will assist the Congress and financial managers to evaluate the cost and performance of Federal programs and activities, and will therefore provide important information that has been lacking, but is needed for improved decision making by financial managers and the Congress. (7) The development of financial management systems with the capacity to support these standards and concepts will, over the long term, improve Federal financial management. (b) PURPOSE—The purposes of this Act are to— (1) provide for consistency of accounting by an agency from one fiscal year to the next, and uniform accounting standards throughout the Federal Government; (2) require Federal financial management systems to support full disclosure of Federal financial data, including the full costs of Federal programs and activities, to the citizens, the Congress, the President, and agency management, so that programs and activities can be considered based on their full costs and merits; (3) increase the accountability and credibility of federal financial management; (4) improve performance, productivity and efficiency of Federal Government financial management; (5) establish financial management systems to support controlling the cost of Federal Government; (6) build upon and complement the Chief Financial Officers Act of 1990 (Public Law 101-576; 104 Stat 2838), the Government Performance and Results Act of 1993 (Public Law 103- 62 107 Stat. 285) and the Government Management Reform Act of 1994 (Public Law 103-356; 108 Stat. 3410); and (7) increase the capability of agencies to monitor execution of the budget by more readily permitting reports that compare spending of resources to results of activities. SEC. 803. IMPLEMENTATION OF FEDERAL FINANCIAL MANAGEMENT 31 USC 3512 IMPROVEMENTS. note. (a) IN GENERAL.— Each agency shall implement and maintain financial management systems that comply substantially with Federal financial management systems requirements, applicable Federal accounting standards, and the United States Government Standard General Ledger at the transaction level. (b) AUDIT COMPLIANCE FINDING.—

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