BIENNIAL FINANCIAL MANAGEMENT IMPROVEMENT PLAN.10 USC 2222 note.

SEC. 1007. SECOND BIENNIAL FINANCIAL MANAGEMENT IMPROVEMENT PLAN. (a) Additional Matters Required.—The Secretary of Defense shall include in the second biennial financial management improvement plan submitted to Congress under section 2222 of title 10, United States Code (required to be submitted not later than September 30, 2000), the matters specified in subsections (b) through (f), in addition to the matters otherwise required under that section. (b) Systems Inventory.—The plan referred to in subsection (a) shall include an inventory of the finance systems, accounting systems, and data feeder systems of the Department of Defense referred to in section 2222(c) of title 10, United States Code, and, for each of those systems, the following: (1) A statement regarding whether the system complies with the requirements applicable to that system under sections 3512, 3515, and 3521 of title 31, United States Code. (2) A statement regarding whether the system is to be retained, consolidated, or eliminated. (3) A detailed plan of the actions that are being taken or are to be taken within the Department of Defense (including provisions for schedule, performance objectives, interim milestones, and necessary resources)— (A) to ensure easy and reliable interfacing of the system (or a consolidated or successor system) with the Department’s core finance and accounting systems and with other data feeder systems; and (B) to institute appropriate internal controls that, among other benefits, ensure the integrity of the data in the system (or a consolidated or successor system). (4) For each system that is to be consolidated or eliminated, a detailed plan of the actions that are being taken or are to be taken (including provisions for schedule and interim milestones) in carrying out the consolidation or elimination, including a discussion of both the interim or migratory systems and any further consolidation that may be involved. (5) A list of the officials in the Department of Defense who are responsible for ensuring that actions referred to in paragraphs (3) and (4) are taken in a timely manner. (c) Major Procurement Actions.—The plan referred to in subsection (a) shall include a description of each major procurement action that is being taken within the Department of Defense to replace or improve a finance and accounting system or a data feeder system shown in the inventory under subsection (a) and, for each such procurement action, the measures that are being taken or are to be taken to ensure that the new or enhanced system— (1) provides easy and reliable interfacing of the system with the core finance and accounting systems of the department and with other data feeder systems; and 113 STAT. 736 (2) includes appropriate internal controls that, among other benefits, ensure the integrity of the data in the system. (d) Financial Management Competency Plan.—The plan referred to in subsection (a) shall include a financial management competency plan that includes performance objectives, milestones (including interim objectives), responsible officials, and the necessary resources to accomplish the performance objectives, together with the following: (1) A description of the actions necessary to ensure that the person in each comptroller position (or comparable position) in the Department of Defense (whether a member of the Armed Forces or a civilian employee) has the education, technical competence, and experience to perform in accordance with the core competencies necessary for financial management. (2) A description of the education that is necessary for a financial manager in a senior grade to be knowledgeable in— (A) applicable laws and administrative and regulatory requirements, including the requirements and procedures relating to Government performance and results under sections 1105(a)(28), 1115, 1116, 1117, 1118, and 1119 of title 31, United States Code; (B) the strategic planning process and how the process relates to resource management; (C) budget operations and analysis systems; (D) management analysis functions and evaluation; and (E) the principles, methods, techniques, and systems of financial management. (3) The advantages and disadvantages of establishing and operating a consolidated Department of Defense school that instructs in the principles referred to in paragraph (2)(E). (4) The applicable requirements for formal civilian education. (e) Improvements to DFAS, Etc.—The plan referred to in subsection (a) shall include a detailed plan (including performance objectives and milestones and standards for measuring progress toward attainment of the objectives) for the following: (1) Improving the internal controls and internal review processes of the Defense Finance and Accounting Service to provide reasonable assurances that— (A) obligations and costs are in compliance with applicable laws; (B) funds, property, and other assets are safeguarded against waste, loss, unauthorized use, and misappropriation; (C) revenues and expenditures applicable to agency operations are properly recorded and accounted for so as to permit the preparation of accounts and reliable financial and statistical reports and to maintain accountability over assets; (D) obligations and expenditures are recorded contemporaneously with each transaction; (E) organizational and functional duties are performed separately .at each step in the cycles of transactions (including, in the case of a contract, the specification of 113 STAT. 737requirements, the formation of the contract, the certification of contract performance, receiving and warehousing, accounting, and disbursing); and (F) use of progress payment allocation systems results in posting of payments to appropriation accounts consistent with section 1301 of title 31, United States Code. (2) Ensuring that the Defense Finance and Accounting Service has— (A) a single standard transaction general ledger that, at a minimum, uses double-entry bookkeeping and complies with the United States Government Standard General Ledger at the transaction level as required under section 803(a) of the Federal Financial Management Improvement Act of 1996 (31 U.S.C. 3512 note); (B) an integrated data base for finance and accounting functions; and (C) automated cost, performance, and other output measures. (3) Providing a single, consistent set of policies and procedures for financial transactions throughout the Department of Defense. (4) Ensuring compliance with applicable policies and procedures for financial transactions throughout the Department of Defense. (5) Reviewing safeguards for preservation of assets and verifying the existence of assets. (f) Internal Controls Checklist.—The plan referred to in subsection (a) shall include an internal controls checklist, to be prescribed by the Under Secretary of Defense (Comptroller), which shall provide standards for use throughout the Department of Defense, together with a statement of the Department of Defense policy on use of the checklist throughout the Department. (g) Safeguarding Sensitive Information.—To the extent necessary to protect sensitive information, the Secretary of Defense may provide information required by subsections (b) and (c) in an annex that is available to Congress, but need not be made public.