Page:United States Statutes at Large Volume 96 Part 1.djvu/856

 96 STAT. 814

PUBLIC LAW 97-255—SEPT. 8, 1982 Public Law 97-255 97th Congress An Act

Sept. 8, 1982 [H.R. 1526]

Federal Managers' Financial Integrity Act of 1982. 31 USC 65 note. Internal accounting and administrative controls. Establishment.

Evaluation guidelines.

Modification.

Compliance, statement.

Report.

To amend the Accounting and Auditing Act of 1950 to require ongoing evaluations and reports on the adequacy of the systems of internal accounting and administrative control of each executive agency, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. This Act may be cited as the "Federal Managers' Financial Integrity Act of 1982". SEC. 2. Section 113 of the Accounting and Auditing Act of 1950 (31 U.S.C. 66a) is amended by adding at the end thereof the following new subsection: "(d)(1)(A) To ensure compliance with the requirements of subsection (a)(3) of this section, internal accounting and administrative controls of each executive agency shall be established in accordance with standards prescribed by the Comptroller General, and shall provide reasonable assurances that— "(i) obligations and costs are in compliance with applicable law; "(ii) funds, property, and other assets are safeguarded against waste, loss, unauthorized use, or misappropriation; and "(iii) revenues and expenditures applicable to agency operations are properly recorded and accounted for to permit the preparation of accounts and reliable financial and statistical reports and to maintain accountability over the assets. "(B) The standards prescribed by the Comptroller General under this paragraph shall include standards to ensure the prompt resolution of all audit findings. "(2) By December 31, 1982, the Director of the Office of Management and Budget, in consultation with the Comptroller General, shall establish guidelines for the evaluation by agencies of their systems of internal accounting and administrative control to determine such systems' compliance with the requirements of paragraph (1) of this subsection. The Director, in consultation with the Comptroller General, may modify such guidelines from time to time as deemed necessary. "(3) By December 31, 1983, and by December 31 of each succeeding year, the head of each executive agency shall, on the basis of an evaluation conducted in accordance with guidelines prescribed under paragraph (2) of this subsection, prepare a statement— "(A) that the agency's systems of internal accounting and administrative control fully comply with the requirements of paragraph (1); or "(B) that such systems do not fully comply with such requirements. "(4) In the event that the head of an agency prepares a statement described in paragraph (3)(B), the head of such agency shall include with such statement a report in which any material weaknesses in the agency's systems of internal accounting and administrative

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