FINANCIAL MANAGEMENT OF THE NATIONAL RECONNAISSANCE OFFICE.

SEC. 311. FINANCIAL MANAGEMENT OF THE NATIONAL RECONNAISSANCE OFFICE. (a) Management Review.—(1) The Inspector General for the Central Intelligence Agency, assisted by the Inspector General of the Department of Defense, shall undertake a comprehensive review of the financial management of the National Reconnaissance Office to evaluate the effectiveness of policies and internal controls over the budget of the National Reconnaissance Office, including the use of carry-forward funding, to ensure that National Reconnaissance Office funds are used in accordance with applicable Federal acquisition regulations and the policies of the Director of Central Intelligence and consistent with those of the Department of Defense, the guidelines of the National Reconnaissance Office, and congressional direction. (2) The review required by paragraph (1) shall— (A) determine the quality of the development and implementation of the budget process within the National Reconnaissance Office at both the comptroller and directorate level; (B) assess the advantages and disadvantages of the use of incremental versus full funding for contracts entered into by the National Reconnaissance Office; (C) assess the advantages and disadvantages of the National Reconnaissance Office’s use of carry-forward funding; (D) determine how the National Reconnaissance Office defines, identifies, and justifies carry-forward funding requirements; (E) determine how the National Reconnaissance Office tracks and manages carry-forward funding; (F) determine how the National Reconnaissance Office plans to comply with congressional direction regarding carry-forward funding; 109 STAT. 968 (G) determine whether or not a contract entered into by the National Reconnaissance Office has ever encountered a contingency which required the utilization of more than 30 days of carry-forward funding; (H) consider the proposal by the Director of Central Intelligence for the establishment of a position of a Chief Financial Officer, and assess how the functions to be performed by that officer would enhance the financial management of the National Reconnaissance Office; and (I) make recommendations, as appropriate, to improve control and management of the budget process of the National Reconnaissance Office. (3) The Director of Central Intelligence shall submit a report to the Congress setting forth the findings of the review required by paragraph (1) not later than March 1, 1996, with an interim report provided to the Congress not later than 2 weeks after the enactment of this Act. (b) Report.—(1) Not later than January 30, 1996, the President shall submit a report to the appropriate committees of the Congress on a proposal to subject the budget of the intelligence community to greater oversight by the executive branch of Government. (2) Such report shall include (among other things)— (A) consideration of establishing by statute a financial control officer for the National Reconnaissance Office, other elements of the intelligence community, and for the intelligence community as a whole; (B) recommendations for procedures to be used by the Office of Management and Budget for review of the budget of the National Reconnaissance Office; (C) a proposed statutory provision that would require the Director of Central Intelligence to establish a policy to restrict the National Reconnaissance Office authority on carry-forward funding in a manner consistent with the restriction on such authority within the Department of Defense; and (D) an evaluation of how changes proposed as a result of the review required by subsection (a) will affect, directly or indirectly, the National Reconnaissance Office’s streamlined acquisition process and, ultimately, program costs. (c) Definition.—As used in this section, the term “intelligence community” has the meaning given to the term in section 3(4) of the National Security Act of 1947 (50 U.S.C. 401a(4)).