Federal Financial Management Reform Act of 1987

Federal Financial Management Reform Act of 1987 - Provides for the appointment within the Department of the Treasury of an Under Secretary for Financial Management (Under Secretary). Requires the Under Secretary to be appointed by the President, by and with the advice and consent of the Senate. Sets forth the responsibilities of the Under Secretary, including: (1) developing and initiating a plan for an integrated financial management system for all executive agencies; (2) developing a methodology to define Federal agency assets and liabilities; (3) establishing an advisory Financial Management Improvement Council; and (4) reporting to the Congress annually on the development and implementation of the financial management plan. Authorizes appropriations for the employment of up to 30 persons who shall report to the Under Secretary.

Requires the head of each agency to include with each appropriation request a statement as to whether and to what extent the amounts representing actual transactions and balances for the most recently completed fiscal year were derived from accounting systems which conform to the requirements prescribed by the Comptroller General and implemented by the Under Secretary. Requires such statements to be included in the President's annual budget for each pertinent budget section.

Requires the designation of an agency chief financial officer in the: (1) Department of Agriculture; (2) Department of Commerce; (3) Department of Defense; (4) Department of Education; (5) Department of Energy; (6) Department of Health and Human Services; (7) Department of Housing and Urban Development; (8) Department of the Interior; (9) Department of Justice; (10) Department of Labor; (11) Department of State; (12) Department of Transportation; (13) Department of the Treasury; (14) Department of the Army; (15) Department of the Navy; (16) Department of the Air Force; (17) Defense Logistics Agency; (18) Environmental Protection Agency; (19) General Services Administration; (20) National Aeronautics and Space Administration; (21) Small Business Administration; and (22) Veterans Administration. Requires the agency chief financial officer to: (1) manage all financial management system operations of the agency; (2) advise the agency head on financial management; (3) develop an agency financial management system; and (4) transmit an annual report to the agency head and the Under Secretary containing an analysis of the status of agency financial management.

Prohibits the President from including in his annual budget any recommendation for action that would require an increase in the borrowing authority, or public debt limit, of the United States by more than the applicable maximum deficit amount plus estimated surpluses in Government funds and accounts required to be invested by law.

Requires savings resulting from financial management amendments made by this Act to be withheld from obligation each fiscal year and returned to the Treasury subject to specified conditions.

Authorizes appropriations for the Under Secretary to conduct an assessment of the future organizational placement of Government-wide financial management leadership, including: (1) an evaluation of the creation of a financial management agency within the Executive Office of the President; and (2) Government-wide devices for improvement of financial accountability.