DESIGNATION IN EACH MILITARY DEPARTMENT OF ASSISTANT SECRETARY WITH RESPONSIBILITY FOR FINANCIAL MANAGEMENT

SEC. 702. DESIGNATION IN EACH MILITARY DEPARTMENT OF ASSISTANT SECRETARY WITH RESPONSIBILITY FOR FINANCIAL MANAGEMENT (a) Department of the Army.—(1) Section 3016(b) of title 10, United States Code, is amended by adding at the end the following new paragraph: 102 STAT. 1993 “(4) One of the Assistant Secretaries shall be the Assistant Secretary of the Army for Financial Management. The Assistant Secretary shall have as his principal responsibility the exercise of the comptroller functions of the Department of the Army, including financial management functions. The Assistant Secretary shall be responsible for all financial management activities and operations of the Department of the Army and shall advise the Secretary of the Army on financial management.”. (2) Chapter 303 of such title is amended by adding at the end the following new section: “§ 3022. Financial management “(a) The Secretary of the Army shall provide that the Assistant Secretary of the Army for Financial Management shall direct and manage financial management activities and operations of the Department of the Army, including ensuring that financial management systems of the Department of the Army comply with subsection (b). The authority of the Assistant Secretary for such direction and management shall include the authority to— “(1) supervise and direct the preparation of budget estimates of the Department of the Army and otherwise carry out, with respect to the Department of the Army, the functions specified for the Comptroller of the Department of Defense in section 137(c) of this title; “(2) approve and supervise any project to design or enhance a financial management system for the Department of the Army; and “(3) approve the establishment and supervise the operation of any asset management system of the Department of the Army, including— “(A) systems for cash management, credit management, and debt collection; and “(B) systems for the accounting for the quantity, location, and cost of property and inventory. “(b)(1) Financial management systems of the Department of the Army (including accounting systems, internal control systems, and financial reporting systems) shall be established and maintained in conformance with— “(A) the accounting and financial reporting principles, standards, and requirements established by the Comptroller General under section 3511 of title 31; and “(B) the internal control standards established by the Comptroller General under section 3512 of title 31. “(2) Such systems shall provide for— “(A) complete, reliable, consistent, and timely information which is prepared on a uniform basis and which is responsive to the financial information needs of department management; “(B) the development and reporting of cost information; “(C) the integration of accounting and budgeting information; and “(D) the systematic measurement of performance. “(c) The Assistant Secretary shall maintain a five-year plan describing the activities the Department of the Army proposes to conduct over the next five fiscal years to improve financial management. Such plan shall be revised annually. “(d) The Assistant Secretary of the Army for Financial Management shall transmit to the Secretary of the Army a report each year 102 STAT. 1994on the activities of the Assistant Secretary during the preceding year. Each such report shall include a description and analysis of the status of Department of the Army financial management.”. (3) The table of sections at the beginning of such chapter is amended by adding at the end the following new item: “3022. Financial management.”. (b) Department of the Navy.—Section 5016(b) of such title is amended by adding at the end the following new paragraph: “(3) One of the Assistant Secretaries shall be the Assistant Secretary of the Navy for Financial Management. The Assistant Secretary shall have as his principal responsibility the exercise of the comptroller functions of the Department of the Navy, including financial management functions. The Assistant Secretary shall be responsible for all financial management activities and operations of the Department of the Navy and shall advise the Secretary of the Navy on financial management.”. (2) Chapter 503 of such title is amended by adding at the end the following new section: “§ 5025. Financial management “(a) The Secretary of the Navy shall provide that the Assistant Secretary of the Navy for Financial Management shall direct and manage financial management activities and operations of the Department of the Navy, including ensuring that financial management systems of the Department of the Navy comply with subsection (b). The authority of the Assistant Secretary for such direction and management shall include the authority to— “(1) supervise and direct the preparation of budget estimates of the Department of the Navy and otherwise carry out, with respect to the Department of the Navy, the functions specified for the Comptroller of the Department of Defense in section 137(c) of this title; “(2) approve and supervise any project to design or enhance a financial management system for the Department of the Navy; and “(3) approve the establishment and supervise the operation of any asset management system of the Department of the Navy, including— “(A) systems for cash management, credit management, and debt collection; and “(B) systems for the accounting for the quantity, location, and cost of property and inventory. “(b)(1) Financial management systems of the Department of the Navy (including accounting systems, internal control systems, and financial reporting systems) shall be established and maintained in conformance with— “(A) the accounting and financial reporting principles, standards, and requirements established by the Comptroller General under section 3511 of title 31; and “(B) the internal control standards established by the Comptroller General under section 3512 of title 31. “(2) Such systems shall provide for— “(A) complete, reliable, consistent, and timely information which is prepared on a uniform basis and which is responsive to the financial information needs of department management; “(B) the development and reporting of cost information; 102 STAT. 1995 “(C) the integration of accounting and budgeting information; and “(D) the systematic measurement of performance. “(c) The Assistant Secretary shall maintain a five-year plan describing the activities the Department of the Navy proposes to conduct over the next five fiscal years to improve financial management. Such plan shall be revised annually. “(d) The Assistant Secretary of the Navy for Financial Management shall transmit to the Secretary of the Navy a report each year on the activities of the Assistant Secretary during the preceding year. Each such report shall include a description and analysis of the status of Department of the Navy financial management.”. (3) The table of sections at the beginning of such chapter is amended by adding at the end the following new item: “5025. Financial management.”. (c) Department of the Air Force.—Section 8016(b) of such title is amended by adding at the end the following new paragraph: “(3) One of the Assistant Secretaries shall be the Assistant Secretary of the Air Force for Financial Management. The Assistant Secretary shall have as his principal responsibility the exercise of the comptroller functions of the Department of the Air Force, including financial management functions. The Assistant Secretary shall be responsible for all financial management activities and operations of the Department of the Air Force and shall advise the Secretary of the Air Force on financial management.”. (2) Chapter 803 of such title is amended by adding at the end the following new section: “§ 8022. Financial management “(a) The Secretary of the Air Force shall provide that the Assistant Secretary of the Air Force for Financial Management shall direct and manage financial management activities and operations of the Department of the Air Force, including ensuring that financial management systems of the Department of the Air Force comply with subsection (b). The authority of the Assistant Secretary for such direction and management shall include the authority to— “(1) supervise and direct the preparation of budget estimates of the Department of the Air Force and otherwise carry out, with respect to the Department of the Air Force, the functions specified for the Comptroller of the Department of Defense in section 137(c) of this title; “(2) approve and supervise any project to design or enhance a financial management system for the Department of the Air Force; and “(3) approve the establishment and supervise the operation of any asset management system of the Department of the Air Force, including— “(A) systems for cash management, credit management, and debt collection; and “(B) systems for the accounting for the quantity, location, and cost of property and inventory. “(b)(1) Financial management systems of the Department of the Air Force (including accounting systems, internal control systems, and financial reporting systems) shall be established and maintained in conformance with— 102 STAT. 1996 “(A) the accounting and financial reporting principles, standards, and requirements established by the Comptroller General under section 3511 of title 31; and “(B) the internal control standards established by the Comptroller General under section 3512 of title 31. “(2) Such systems shall provide for— “(A) complete, reliable, consistent, and timely information which is prepared on a uniform basis and which is responsive to the financial information needs of department management; “(B) the development and reporting of cost information; “(C) the integration of accounting and budgeting information; and “(D) the systematic measurement of performance. “(c) The Assistant Secretary shall maintain a five-year plan describing the activities the Department of the Air Force proposes to conduct over the next five fiscal years to improve financial management. Such plan shall be revised annually. “(d) The Assistant Secretary of the Air Force for Financial Management shall transmit to the Secretary of the Air Force a report each year on the activities of the Assistant Secretary during the preceding year. Each such report shall include a description and analysis of the status of Department of the Air Force financial management.”. (3) The table of sections at the beginning of such chapter is amended by adding at the end the following new item: “8022. Financial management.”. (d) Number of Assistant Secretaries in the Department of the Air Force.—Section 8016(a) of such title is amended by striking out “three” and inserting in lieu thereof “four”. (e) Effective Dates.—(1) The amendments made by subsections (a) and (b) shall take effect on January 20, 1989. (2) The amendments made by subsections (c) and (d) shall take effect on July 1, 1989, except that such amendments shall take effect on such earlier date, but not before January 21, 1989, as may be prescribed by the President in advance by Executive order.