FOR HEADS OF EXECUTIVE DEPARTMENTS AND AGENCIES SUBJECT TO THE CHIEF
FINANCIAL OFFICERS (CFO) ACT
E. Daniels, Jr.
Statutory Requirements for Financial Management
other duties, the Government Management Reform Act of 1994 requires
that your agency's FY 2000 financial statements be issued by March
you in the awkward position of having to make representations
and assurances about a financial statement that reflects the activities
of the previous Administration. These representations and assurances
are similar to those required in the preparation and issuance
of financial statements in the private sector.
On such a
short notice, you probably will need to rely heavily on your CFO
or Acting CFO if you want your agency to comply with all statutory
requirements and adhere to all due dates. In order to obtain a
"clean" opinion on its financial statement, your agency will need
to comply with these statutory requirements and deadlines.
I ask that
you take the steps necessary to comply with the law without compromising
your assessment of the financial condition of your agency during
the previous year. Your transmittal letter accompanying the financial
statement can be used for making it clear that these statements
are for the prior year ended under the previous Administration.
There are a
number of other requirements related to your agency's financial
management activities, including a statutory responsibility that
requires OMB to advise on CFO appointments in your agency and to
approve agency CFO organizational structures. If you have any questions
or would like additional information on these matters, I encourage
you to consult with your agency's CFO or call Joe Kull, Deputy Controller
of OMB, at 202-395-3993.