Authority and Responsibilities for Implementation of the Chief Financial Officers Act of 1990 and Related Legislation, 4334-4337 [E9-1440]

Agencies

• Office of the Secretary
• DEPARTMENT OF LABOR

[Federal Register Volume 74, Number 14 (Friday, January 23, 2009)]
[Notices]
[Pages 4334-4337]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-1440]



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Part III





Department of Labor





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Authority and Responsibilities for Implementation of the Chief 
Financial Officers Act of 1990 and Related Legislation; Notice

Federal Register / Vol. 74, No. 14 / Friday, January 23, 2009 / 
Notices

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DEPARTMENT OF LABOR

Office of the Secretary

[Secretary's Order 04-2009]


Authority and Responsibilities for Implementation of the Chief 
Financial Officers Act of 1990 and Related Legislation

1. Purpose

    To delegate authority and assign responsibilities for 
implementation of the Chief Financial Officers Act of 1990 and related 
legislation.

2. Authorities and Directives Affected

A. Authorities

    1. Chief Financial Officers Act of 1990, as amended (Pub. L. 101-
576).
    2. Federal Managers' Financial Integrity Act of 1982 (Pub. L. 97-
255).
    3. Government Performance and Results Act of 1993 (Pub. L. 103-62).
    4. Government Management Reform Act of 1994 (Pub. L. 103-356).
    5. Clinger-Cohen Act of 1996 (Pub. L. 104-106).
    6. Federal Financial Management Improvement Act of 1996 (Pub. L. 
104-208).
    7. Reports Consolidation Act of 2000 (Pub. L. 106-531).
    8. Improper Payments Information Act of 2002 (Pub. L. 107-300).
    9. Accountability of Tax Dollars Act of 2002 (Pub. L. 107-289).
    10. 29 U.S.C. 563, 563a, and 564, authorizing the Working Capital 
Fund at the Department of Labor.
    11. Office of Management and Budget (OMB) Circular No. A-11, 
Preparation, Submission and Execution of the Budget (June 26, 2008).
    12. OMB Circular No. A-123, Management's Responsibility for 
Internal Control (December 21, 2004).
    13. OMB Circular No. A-127, Financial Management Systems (July 23, 
1993).
    14. OMB Circular No. A-134, Financial Accounting Principles and 
Standards (May 20, 1993).
    15. OMB Circular No. A-136, Financial Reporting Requirements (June 
3, 2008).

B. Directives Affected

    1. Secretary's Orders 01-1992 and 01-1997 are superseded and 
canceled.
    2. This Order does not affect Secretary's Order 14-2006, Internal 
Control Program (June 20, 2006).
    3. All references to the Office of the Comptroller, Office of the 
Assistant Secretary for Administration and Management (OASAM), in 
Secretary's Orders, DLMS Chapters, and other Departmental issuances 
shall be considered to refer to the Office of the Chief Financial 
Officer.
    4. Directives inconsistent with this Order are rescinded to the 
extent of the inconsistency.

3. Background and Organization

    The Chief Financial Officers Act of 1990, as part of overall 
Federal financial management reforms, mandated the establishment of a 
Chief Financial Officer (CFO) and Deputy Chief Financial Officer in all 
Cabinet-level Federal agencies, including the Department of Labor 
(DOL). The CFO is appointed by the President and confirmed by the 
Senate, and by statute reports directly to the Secretary. The Deputy 
CFO is a career-reserved position in the Senior Executive Service who 
reports directly to the CFO. The CFO heads the Office of the Chief 
Financial Officer (OCFO), which has such component organization units, 
staffing, and funding as are authorized.

4. Delegation of Authority

    As specified in the CFO Act, at 31 U.S.C. 902, and as detailed in 
Paragraph 5 of this Order, the Chief Financial Officer is delegated 
authority to oversee the financial management functions of the 
Department.

5. Assignment of Responsibilities to the Chief Financial Officer

    A. As required by the CFO Act, the CFO shall--
    1. Report directly to the Secretary and Deputy Secretary regarding 
financial management matters;
    2. Oversee all financial management activities relating to the 
programs and operations of the Department;
    3. Develop and maintain an integrated Departmental accounting and 
financial management system, including financial reporting and internal 
controls, which--
    a. Complies with applicable accounting principles, standards, and 
requirements, and internal control standards;
    b. Complies with such policies and requirements as may be 
prescribed by the Director of the Office of Management and Budget;
    c. Complies with any other requirements applicable to such systems; 
and
    d. Provides for--
    (1) Complete, reliable, consistent, and timely information which is 
prepared on a uniform basis and which is responsive to the financial 
information needs of Departmental management;
    (2) The development and reporting of cost information;
    (3) The integration of accounting and budgeting information; and
    (4) The systematic measurement of financial performance;
    4. Make recommendations to the Secretary regarding the selection of 
the Deputy Chief Financial Officer of the Department, who will have the 
qualifications outlined in the CFO Act at 31 U.S.C. 903;
    5. Direct, manage, and provide policy guidance and oversight of 
Departmental financial management personnel, activities, and 
operations, including--
    a. The preparation and annual revision of a Departmental plan to--
    (1) Implement the 5-year financial management plan prepared by the 
Director of the Office of Management and Budget under 31 U.S.C. 
3512(a)(3); and
    (2) Comply with the requirements for financial statements and 
audits established under 31 U.S.C. 3515, 3521(e), and 3521(f);
    b. The development of Departmental financial management budgets;
    c. The recruitment, selection, and training of personnel to carry 
out Departmental financial management functions;
    d. The approval and management of Departmental financial management 
systems design or enhancement projects;
    e. The implementation of Departmental asset management systems, 
including systems for cash management, credit management, debt 
collection, and property and inventory management and control;
    f. Prepare and transmit an annual report to the Secretary and the 
Director of the Office of Management and Budget, consistent with the 
requirements of OMB Circular No. A-136, which shall include--
    (1) A description and analysis of the status of financial 
management of the Department;
    (2) The annual financial statements prepared under 31 U.S.C. 3515;
    (3) The audit report transmitted to the Secretary under 31 U.S.C. 
3521(f);
    (4) A summary of the reports on internal accounting and 
administrative control systems submitted to the President and the 
Congress under the amendments made by the Federal Managers' Financial 
Integrity Act of 1982 (Pub. L. 97-255); and
    (5) Other information the Secretary considers appropriate to fully 
inform the President and the Congress concerning the financial 
management of the Department;
    6. Monitor the financial execution of the budget of the Department 
in relation to actual expenditures in concert with the responsibilities 
of the Assistant Secretary for Administration and

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Management (ASAM) outlined in Paragraph 6(B), and prepare and submit to 
the Secretary timely financial performance reports; and
    7. Review, on a biennial basis, the fees, royalties, rents, and 
other charges imposed by the Department for services and things of 
value it provides, and make recommendations on revising those charges 
to reflect costs incurred by it in providing those services and things 
of value.
    B. The CFO will have the following additional responsibilities:
    1. Policy Duties.
    a. Develop and promulgate accounting and financial management 
policies for DOL and its component agencies, and review and approve 
component agency financial policies, procedures, and structures for 
adherence to the policies of DOL and other Federal agencies.
    b. Ensure compliance throughout DOL, and its component agencies, 
with applicable accounting standards and principles, and financial 
information and system functional standards, including the standards 
promulgated by the Federal Accounting Systems Advisory Board, the 
Federal Government's Standard General Ledger, the core requirements for 
financial systems, and the financial statement form and content 
guidance issued by OMB.
    c. Exercise overall responsibility for the Department's compliance 
with FMFIA and for the Department's fiscal integrity; serve on the 
Department's Internal Control Board; report directly to the Secretary 
on internal control matters; carry out the responsibilities specified 
in Secretary's Order 14-2006, Internal Control Program, for the CFO and 
the Internal Control Principal for financial systems and mixed systems 
that are significantly financial.
    d. Ensure adequate controls are in place over asset management, 
including cash management operations, credit management and debt 
collection operations, and real property, equipment, and inventories.
    e. Participate with Departmental Agency heads and other staff in 
the policy review of proposed legislative and program initiatives from 
a financial management perspective.
    f. Ensure that component agencies gather timely and accurate 
financial information to manage and oversee major procurements.
    g. Develop policies and procedures for investigating potential 
violations of the Anti-Deficiency Act; working under policies 
established by the CFO, and in cooperation with the ASAM and the 
Solicitor of Labor, notify the Secretary of Anti-Deficiency Act 
violations, and transmit agency reports of Anti-Deficiency Act 
violations to the Secretary for transmittal to the President, Congress, 
OMB, and the Government Accountability Office, as applicable.
    2. Budget Duties.
    a. Monitor the financial execution of the budget of the Department 
in relation to actual expenditures, and prepare and submit to the 
Secretary timely financial performance reports.
    b. Provide leadership, direction, coordination, and related 
services concerning budget execution for the Department and its 
component agencies.
    c. Participate with Departmental Agency heads and other staff at a 
policy and decision-making level in the Departmental budget execution 
review process.
    d. Review the budget requests for all Departmental and component 
agency financial management functions; recommend to the Secretary their 
modification as necessary to ensure that appropriate resources are 
requested to effectively and efficiently perform necessary financial 
and related functions.
    e. Promote the development and reporting of cost information in 
support of the systematic measurement of performance in appropriate 
budget documents.
    f. Manage and oversee the Department's administrative control of 
funds from the time funds are allotted to the DOL agencies.
    3. Financial Systems Duties.
    a. Review and approve the design and operation of component agency 
financial, accounting, and asset systems, specifically including the 
financial aspects of grant management systems, debt collection systems, 
and other systems defined by FFMIA.
    b. Provide oversight of, and issue core requirements and standards 
related to, component agency financial systems, activities, and 
operations, including preparation and revision of agency financial 
management plans and financial performance reports.
    c. In coordination with the ASAM, establish policies, procedures, 
and other guidelines to prescribe the form, content, and frequency of 
accounting information to be reported from component agency systems to 
meet DOL and central Federal agency information requirements.
    d. Participate in the review and approval process of information 
systems that provide, at least in part, financial and/or program 
performance data.
    e. In consultation with the Chief Information Officer (CIO), ensure 
that the accounting, financial, asset management, and other information 
systems of the Department are designed, developed, maintained, and used 
effectively to provide financial or program performance data for 
financial statements of the Department.
    f. Ensure, in consultation with the CIO, that program information 
systems provide financial, budget, and programmatic data on a reliable, 
consistent and timely basis to agency financial management systems.
    g. Recommend to the Secretary any information resource management 
and budget decisions affecting financial management processes, systems, 
and operations.
    h. Consult with the CIO to ensure sufficient oversight and security 
exist to maintain the integrity of information systems that affect the 
preparation and presentation of the Department's financial statements.
    4. External Reporting Duties.
    a. Prepare the financial management components of the annual 
Performance and Accountability Report (PAR) for transmittal to the 
Secretary and the Director of OMB. The PAR will meet the requirements 
of OMB Circular No. A-136, and shall include, in part--
    (1) A description and analysis of the status of financial 
management of the Department;
    (2) The Department's annual financial statements and accounting 
reports, including, where appropriate, pertinent performance measures;
    (3) The audit report transmitted to the Secretary;
    (4) The annual report required to be submitted to the President and 
the Congress under the FMFIA;
    (5) The report required by the Improper Payments Information Act;
    (6) The Management Assurance Statement required by OMB Circular No. 
A-123;
    (7) The annual financial management report required by the Chief 
Financial Officers Act; and
    (8) Other information the Secretary considers appropriate to fully 
inform the President and the Congress concerning the financial 
management of the Department.
    b. Prepare the semi-annual audit resolution reports required by the 
Amendments to the Inspector General Act.
    c. Coordinate and manage financial management reporting 
requirements as may be imposed by OMB, the Department of the Treasury, 
other central Federal agencies, and Congress.
    d. In coordination with the ASAM and Agency heads, develop 
reporting mechanisms that integrate program performance and financial 
data, and

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facilitate the display of such data in budget documents, financial 
statements, and other pertinent communications.
    e. In consultation with the CIO, ensure financial statements 
support--
    (1) Assessments and revisions of mission-related and administrative 
processes of the Department; and
    (2) Measurement of the performance of investments made by the 
Department in information systems.
    5. Financial Management Personnel Duties.
    a. Provide oversight of, and issue core requirements and standards 
related to, component agency financial management personnel.
    b. Provide policy advice and assistance to DOL executives, 
including component agency heads, on all personnel matters affecting 
financial management personnel throughout the DOL and its component 
agencies, and on budget and staffing levels for component agency 
financial functions.
    c. Review all proposed personnel selections, skill requirements, 
performance standards, and position descriptions for financial 
management personnel at the GS-15 level and above throughout the DOL 
and its component agencies; discuss any problems with the component 
agency head and appeal any unresolved issue to the Secretary through 
the Deputy Secretary.
    d. Manage a comprehensive training and development program for 
budget analysts, accountants, financial managers, and financial 
technicians; ensure that staff skills are commensurate with 
requirements; and implement a Continuing Professional Education (or 
similar) program.
    6. Financial Programmatic Duties.
    a. Manage Departmental programs on audit resolution, travel 
management, cash management, debt collection, asset management, and 
financial management activities.
    b. Manage centralized Departmental accounting functions for fund 
and cost accounting, capitalized assets accounting, grant accounting, 
DOL employee compensation and benefits, and voucher, commercial bill, 
and other payments.
    c. Exercise Departmental approval authority over interagency 
transactions involving component agency program funds, such as for 
investment or transfer.
    d. Establish and chair a CFO Advisory Council within DOL to provide 
a forum for component organizations to advise and support the CFO in 
matters affecting the financial community. The Advisory Council will 
facilitate the dissemination of financial policies established by the 
CFO to component agencies.
    e. Maintain and operate a Working Capital Fund (WCF) and related 
accounts offering, as appropriate and advantageous to the Department, a 
comprehensive program of centralized services funded by customer agency 
reimbursements in advance that--
    (1) Ensures customer agencies access to meaningful information on 
the full costs of those centralized services, conditions for usage, and 
the cost allocation formulas employed in the lawful distribution of 
annual charges against the respective agency appropriation accounts; 
and
    (2) Ensures, through the creation and regular convening of a 
Working Capital Fund Committee, the opportunities for meaningful and 
informed customer agency participation or representation in reviewing 
WCF activities, costs, and charges, and in recommending changes or 
improvements to the CFO.
    (3) Is operated on the basis of agency reimbursement agreements 
between customers and service providers and timely cost assessments and 
related adjustments for services provided or offered.
    f. Provide technical reviews of finance offices in the DOL and its 
component agencies, and oversee component agency financial systems as 
defined in the FFMIA.
    g. Appraise centralized and decentralized operations and 
organizations to determine more effective and cost-efficient methods of 
performing required financial functions.
    h. Serve as the Department's Improper Payment Reduction 
Coordinator, with responsibilities including, but not limited to:
    (1) Coordinating the establishment of policies and procedures for 
assessing Departmental, component agency, and program risks of improper 
payments;
    (2) Coordinating Departmental, component agency, and program 
management actions to reduce improper payments. These duties include:
    a. Assigning responsibility for specific areas of improper payment-
related activities to appropriate component agency, program, or 
activity officials;
    b. Coordinating the development of detailed action plans to 
determine the nature and extent of possible improper payments for all 
DOL programs and activities spending Federal funds;
    c. Assisting component agency and program management in identifying 
cost-effective control activities to address identified risk areas;
    d. Assisting component agency and program management in 
establishing improper payment reduction goals or targets and measuring 
performance against those goals to determine progress made and areas 
needing additional action;
    e. Developing procedures for working with OMB and the Congress to 
address barriers encountered that inhibit actions to reduce improper 
payments; and
    f. Coordinating periodic reporting, through publicly available 
documents, to the Secretary, OMB, and the Congress on the progress made 
in achieving improper payment reduction targets and future action plans 
for controlling improper payments; and
    (3) Providing a quarterly status report to the Deputy Secretary on 
Departmental activities to identify and reduce improper payments.
    C. In addition to the authority otherwise provided in this Order, 
the CFO--
    1. Subject to Paragraph (7)(B), shall have access to all records, 
reports, audits, reviews, documents, papers, recommendations, or other 
material which are the property of the Department or which are 
available to the Department, and which relate to programs and 
operations with respect to which the CFO has responsibilities;
    2. May request such information or assistance as may be necessary 
for carrying out the duties and responsibilities provided by this Order 
from any Federal, State, or local governmental entity; and
    3. To the extent and in such amounts as may be provided in advance 
by appropriations Acts, may--
    a. Enter into contracts and other arrangements with public agencies 
and with private persons for the preparation of financial statements, 
studies, analyses, and other services; and
    b. Make such payments as may be necessary to carry out the 
provisions of this Order.

6. Assignment of Responsibilities to Other Individuals

    A. Unless modified by this Order, the heads of component Agencies 
retain previously delegated responsibilities and authority. In the 
context of the Department's financial management program, they are 
specifically charged with the responsibility to--
    1. In consultation with the CFO and the CIO, define program 
information needs and develop strategies, systems, and capabilities to 
meet those needs.
    2. Perform transaction and operational level financial functions in 
accordance with policies, requirements, and procedures established by 
the CFO.
    3. Direct financial staffs and functions in their respective 
component agencies

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consistent with those policies and procedures established by the CFO.
    4. Facilitate the CFO's oversight responsibilities with respect to 
financial operations and component agency program financial systems by 
providing and maintaining system documentation, audit trails, summary 
or detailed transaction data, and such other information as the CFO may 
require.
    5. Fully solicit, consider, and cooperate with the CFO in the 
review of proposed appointment, promotion, and other personnel actions 
affecting financial management staff at the GS-15 level and above.
    6. Manage grants, procurement, property, debt management/accounts 
receivable, and other management systems for their respective component 
agencies, in a manner consistent with the CFO's responsibilities 
prescribed in this Order.
    B. The ASAM's budget execution responsibilities related to the 
implementation of the CFO Act are--
    1. Submitting requests to OMB for apportionments and 
reapportionments.
    2. Working under policies established by the CFO, administering 
allotments and interagency transactions, including reprogramming and 
transfer requests and notifications.
    3. Advising the CFO regarding management and oversight of the 
Department's administrative control of funds, with emphasis on the 
apportionment and allotment processes.
    C. The Inspector General--
    1. Retains full responsibility for previously delegated budget and 
financial management activities pertaining to his or her own office, 
but will participate with the CFO in integrating such delegated 
assignments with the overall financial management program of the 
Department.
    2. Will participate, where appropriate, in joint reviews with the 
CFO of selected financial management functions, operations, and 
systems.
    3. Will participate with the CFO in the resolution of audit issues, 
findings, and recommendations, including those involved in the annual 
financial statements, consistent with its statutory responsibilities 
for managing an audit program.
    D. The Solicitor of Labor is responsible for providing legal advice 
and assistance to the Secretary, Deputy Secretary, CFO, Working Capital 
Fund Committee established pursuant to paragraph 5 above, and all other 
Department of Labor officials who are assigned responsibilities for 
implementation of this Order, except as provided in Secretary's Order 
4-2006 with respect to the Office of Inspector General.

7. Communications

    In consonance with the assignments of responsibility above, the 
Office of the Chief Financial Officer shall ensure that the Agency 
Administrative Officers are apprised of communications to component 
agency financial staff. Similarly, component agencies shall keep the 
Chief Financial Officer apprised of directives and other communications 
affecting their financial staff.

8. Reservations of Authority

    A. Unless otherwise stated in this Order, the submission of reports 
and recommendations to the President and the Congress concerning the 
administration of statutory or administrative provisions is reserved to 
the Secretary.
    B. Except as provided in Paragraph (5)(D)(1), this Order does not 
provide to the CFO any access greater than permitted under any other 
law to records, reports, audits, reviews, documents, papers, 
recommendations, or other material of the Office of Inspector General.

9. Redelegations and Transfers of Authority

    Unless provided otherwise in this or another Secretary's Order, the 
authority delegated in this Order may be redelegated or transferred, as 
permitted by law or regulation.

10. Effective Date

    This Order is effective immediately.

    Dated: January 15, 2009.
Elaine L. Chao,
Secretary of Labor.
 [FR Doc. E9-1440 Filed 1-22-09; 8:45 am]
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