BIENNIAL FINANCIAL MANAGEMENT IMPROVEMENT PLAN.

SEC. 1008. BIENNIAL FINANCIAL MANAGEMENT IMPROVEMENT PLAN. (a) Biennial Plan.—(1) Chapter 131 of title 10, United States Code, is amended by adding at the end the following new section: “§ 2222. Biennial financial management improvement plan “(a) Biennial Plan Required.—The Secretary of Defense shall submit to Congress a biennial strategic plan for the improvement of financial management within the Department of Defense. The plan shall be submitted not later than September 30 of each even-numbered year. “(b) Concept of Operations.—Each plan under subsection (a) shall include a statement of the Secretary of Defense’s concept of operations for the financial management of the Department of Defense. Each such statement shall be a clear description of the manner in which the Department’s financial management operations are carried out or will be carried out under the improvements set forth in the plan under subsection (a), including identification of operations that must be performed. “(c) Matters To Be Addressed in Plan.—(1) Each plan under subsection (a) shall address all aspects of financial management within the Department of Defense, including the finance systems, accounting systems, and data feeder systems of the Department that support financial functions of the Department. “(2) For the purposes of paragraph (1), a data feeder system is an automated or manual system from which information is derived for a financial management system or an accounting system.”.111 STAT. 1871 (2) The table of sections at the beginning of such chapter is amended by adding at the end the following new item: “2222. Biennial financial management improvement plan.”. (b) Additional Content of First Plan.—The first financial management improvement plan submitted under section 2222 of title 10, United States Code (as added by subsection (a)), shall include the following: (1) A description of the costs and benefits of integrating the various finance and accounting systems of the Department of Defense and reducing the total number of such systems, together with the Secretary’s assessment of the feasibility of implementing such an integration. (2) Identification of problems with the accuracy of data included in the finance systems, accounting systems, and data feeder systems that support financial functions of the Department of Defense, together with a description of the actions that the Secretary can take to address those problems. (3) Identification of weaknesses in the internal controls of the systems referred to in paragraph (2), together with a description of the actions that the Secretary can take to address those weaknesses. (4) A description of actions that the Secretary can take to eliminate negative unliquidated obligations, unmatched disbursements, and in-transit disbursements and to avoid such obligations and disbursements in the future. (5) A description of the status of the efforts being undertaken in the Department to consolidate and eliminate— (A) redundant or unneeded finance systems; and (B) redundant or unneeded accounting systems. (6) A description of efforts being undertaken to consolidate or eliminate redundant personnel data systems, acquisition data systems, asset accounting systems, time and attendance systems, and other data feeder systems of the Department. (7) A description of efforts being undertaken to integrate the data feeder systems of the Department with the finance and accounting systems of the Department. (8) A description of problems with the organization or performance of the Operating Locations and Service Centers of the Defense Finance and Accounting Service, together with a description of the actions the Secretary can take to address those problems. (9) A description of the costs and benefits of reorganizing the Operating Locations and Service Centers of the Defense Finance and Accounting Service according to function, together with the Secretary’s assessment of the feasibility of carrying out such a reorganization. (10) A description of the costs and benefits of contracting for private-sector performance of specific functions currently performed by the Defense Finance and Accounting Service, together with the Secretary’s assessment of the feasibility of contracting for such performance. (11) A description of actions that can be taken to ensure that each comptroller position (and comparable position) in the Department of Defense, whether filled by a member of the Armed Forces or by a civilian employee, is held by a person who, by reason of education, technical competence, and 111 STAT. 1872experience, has the core competencies for financial management. (12) A description of any other change in the financial management structure of the Department or revision of the financial processes and business practices of the Department that the Secretary considers necessary to improve financial management in the Department. (c) Additional Matters.—For each of the problems and actions identified pursuant to paragraphs (1) through (12) of subsection (b) or in any other part of the plan covered by that subsection, the Secretary shall include statements of objectives, performance measures, and schedules and shall specify the individual and organizational responsibilities. (d) Definition.—In subsection (b), the term “data feeder system” has the meaning given that term in subsection (c)(2) of section 2222 of title 10, United States Code, as added by subsection (a).