Government Reform Committee Approves H.R. 4259

Congressman Platts introduced legislation to require the same level of financial management for the Homeland Security Department as every other Cabinet-level agency

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 (DHS). The measure, H.R. 4259, was introduced Tuesday by Rep. Todd Platts (R-Pa.), Chairman Tom Davis (R-Va.), and others and passed the full Committee by voice vote. 

Essentially, H.R. 4259 replaces H.R. 2886, The Department of Homeland Security Financial Accountability Act, which was introduced on July 24, 2003, by Rep. Platts and passed the Government Reform Committee and the Select Homeland Security Committee last fall.  Rep. Platts introduced H.R. 4259 to incorporate key changes requested by the Minority and the Select Committee on Homeland Security, including the establishment of an Office of Program Analysis and Evaluation and the requirement for a Future Years Homeland Security Program and a Homeland Security Strategy.

The main purpose of H.R. 4259, like H.R. 2886, is to 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, which 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. 4259 would put the CFO at DHS on equal footing with all other cabinet-level departments by requiring Senate confirmation.  The current CFO at the Department is appointed by the President without the advice and consent of the Senate.

"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. 4259 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. 4259, this will not occur."

H.R. 4259 now moves to the full House of Representatives, where it is expected to be debated in the near future.