House committee advances DHS financial accountability bill

Measure would require the creation of a chief financial officer at the Homeland Security Department.

The House Government Reform Committee on Thursday passed a revised version of legislation designed to enhance financial management and accountability at the Homeland Security Department.

The modified bill (H.R. 4259), introduced on May 4 by seven members of the committee, replaces legislation introduced in July 2003. That legislation (H.R. 2886), called for Homeland Security to abide by the 1990 Chief Financial Officers Act, which currently covers all other Cabinet-level departments.

The revised legislation, passed at the committee-level by a voice vote, contains financial management provisions almost identical to the earlier measure. It would require the Senate to confirm nominees for DHS chief financial officer and would call for the department to obtain annual audit opinions on internal anti-fraud and embezzlement procedures beginning in fiscal 2005. Homeland Security is the only Cabinet-level department without a Senate-confirmed CFO.

Under the modified bill, the Homeland Security CFO would report to the department's secretary and undersecretary. This dual reporting structure is the one significant change in the financial management portion of the legislation, a committee staff member said. The leadership of the Select Committee on Homeland Security requested the change.

Rep. Todd Platts, R-Pa., and colleagues from both sides of the aisle introduced the revised legislation for mostly administrative reasons. "It was just cleaner to introduce a new bill," the committee staff member said. The Government Reform Committee and Select Committee on Homeland Security passed the original version (H.R. 2886) late last fall.

The Select Committee on Homeland Security had amended the legislation, adding language codifying the DHS program analysis and evaluation office and requiring the department's secretary to submit an annual, comprehensive national strategy for homeland security.

Sponsors of the cleaner, consensus version of the Homeland Security Financial Accountability Act are hoping to move the bill to the House floor quickly, the committee aide said. The Senate passed similar legislation (S. 1567) in November 2003.

While the legislation enjoys bipartisan support in Congress, White House and Homeland Security officials have expressed opposition to the financial management provisions. Andrew Maner, Homeland Security's CFO, and his predecessor, Bruce Carnes, say the bill is well-intentioned but unnecessary. Both argue that the department's current management structure is effective.

The White House would like to cut down on the number of presidential appointments requiring Senate confirmation.

But Platts argues that Senate confirmation gives the CFO the stature and level of responsibility necessary to encourage financial accountability. "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," he said Thursday. "DHS faces many daunting challenges, and [overcoming] these challenges will require strong leadership and a commitment from top-level management."