PUBLIC LAW 107-289—NOV. 7, 2002 116 STAT. 2049
Public Law 107-289
107th Congress
An Act
To amend title 31, United States Code, to expand the types of Federal agencies
that are required to prepare audited financial statements.
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the "Accountabihty of Tax Dollars
Act of 2002".
SEC. 2. AMENDMENTS RELATING TO AUDITING REQUIREMENT FOR
FEDERAL AGENCY FINANCIAL STATEMENTS.
(a) IN GENERAL.—Section 3515 of title 31, United States Code,
is amended—
(1) in subsection (a)—
(A) by striking "Not later" and inserting "(1) Except
as provided in subsection (e), not later";
(B) by striking "each executive agency identified in
section 901(b) of this title" and inserting "each covered
executive agency"; and
(C) by striking "1997" and inserting "2003";
(2) in subsection (b) by striking "an executive agency" and
inserting "a covered executive agency";
(3) in subsections (c) and (d) by striking "executive agen
cies" each place it appears and inserting "covered executive
agencies"; and
(4) by adding at the end the following:
"(e)(1) The Director of the Office of Management and Budget
may exempt a covered executive agency, except an agency described
in section 901(b), from the requirements of this section with respect
to a fiscal year if—
"(A) the total amount of budget authority available to the
agency for the fiscal year does not exceed $25,000,000; and
"(B) the Director determines that requiring an annual
audited financial statement for the agency with respect to the
fiscal year is not warranted due to the absence of risks associ
ated with the agency's operations, the agency's demonstrated
performance, or other factors that the Director considers rel
evant.
"(2) The Director shall annually notify the Committee on
Government Reform of the House of Representatives and the Com
mittee on Governmental Affairs of the Senate of each agency the
Director has exempted under this subsection and the reasons for
each exemption.
"(f) The term 'covered executive agency'— Nov. 7, 2002
[H.R. 4685]
Accountability of
Tax Dollars Act
of 2002.
31 use 3501
note.
Notification. 116 STAT. 2050 PUBLIC LAW 107-289—NOV. 7, 2002
"(1) means an executive agency that is not required by
another provision of Federal law to prepare and submit to
the Congress and the Director of the Office of Management
and Budget an audited financial statement for each fiscal year,
covering all accounts and associated activities of each office,
bureau, and activity of the agency; and
"(2) does not include a corporation, agency, or instrumen
tality subject to chapter 91 of this title.".
31 use 3515 (b) WAIVER AUTHORITY.—
note. (1) IN GENERAL.—The Director of the Office of Management
and Budget may waive the application of all or part of section
3515(a) of title 31, United States Code, as amended by this
section, for financial statements required for the first 2 fiscal
years beginning after the date of the enactment of this Act
for an agency described in paragraph (2) of this subsection.
(2) AGENCIES DESCRIBED.—^An agency referred to in para
graph (1) is any covered executive agency (as that term is
defined by section 3515(f) of title 31, United States Code, as
amended by subsection (a) of this section) that is not an execu
tive agency identified in section 901(b) of title 31, United States
Code.
Approved November 7, 2002.
LEGISLATIVE HISTORY—H.R. 4685 (S. 2644):
SENATE REPORTS: No. 107-331 accompanying S. 2644 (Comm. on Governmental
Affairs).
CONGRESSIONAL RECORD, Vol. 148 (2002):
Oct. 7, considered and passed House.
Oct. 17, considered and passed Senate.
WEEICLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 38 (2002):
Nov. 7, Presidential statements.
Brief
'The Accountability of Tax Dollars Act of 2002' amends title 31 of the United States Code to expand the types of federal agencies required to prepare audited financial statements. The act requires each covered executive agency to submit an annual audited financial statement, unless exempted by the Director of the Office of Management and Budget due to low budget authority or lack of risk associated with operations. Waiver authority is also granted for certain agencies.
Highlights content goes here...
Purpose
The Accountability of Tax Dollars Act of 2002, also known as Public Law 107-289, was enacted on November 7, 2002. The primary purpose of this legislation is to amend Title 31, United States Code, with the aim of expanding the types of Federal agencies required to prepare audited financial statements.
Key Provisions
- Section 1 introduces the short title of the Act as the “Accountability of Tax Dollars Act of 2002.”
- Section 2 amends Section 3515 of Title 31, United States Code, to expand the types of Federal agencies that are required to prepare audited financial statements.
- The amendments include changes to subsections (a), (b), (c), and (d) of Section 3515, which pertain to covered executive agencies and their requirements for preparing audited financial statements.
- A new subsection (e) is added, allowing the Director of the Office of Management and Budget to exempt certain covered executive agencies from the auditing requirement if they meet specific criteria, such as having a total budget authority of $25 million or less.
Industry Impact
The Accountability of Tax Dollars Act of 2002 has significant implications for Federal agencies and their financial reporting requirements. The expanded types of Federal agencies that are required to prepare audited financial statements will lead to increased transparency and accountability in government spending.
- Increased Transparency: The Act’s requirement for audited financial statements from more Federal agencies will provide stakeholders with a clearer understanding of government spending and budget allocations.
- Improved Accountability: By expanding the scope of agencies subject to auditing, the Act promotes greater accountability within the Federal government, enabling policymakers and taxpayers to make informed decisions about resource allocation.
Updates/Amendments
The Accountability of Tax Dollars Act of 2002 amends existing legislation regarding Federal agency financial reporting requirements. Key updates include:
- Expansion of Covered Executive Agencies: The Act expands the scope of agencies subject to auditing requirements, including executive agencies not previously required to submit audited financial statements.
- Exemption Authority for the Director of OMB: The Director is granted authority to exempt certain covered executive agencies from auditing requirements under specific conditions.
The Accountability of Tax Dollars Act of 2002 represents a significant step towards enhancing transparency and accountability in government spending. By expanding the types of Federal agencies subject to auditing requirements, this legislation promotes greater fiscal responsibility within the Federal government.
