Federal Management Reorganization and Cost Control Act of 1986

(Reported to Senate from the Committee on Governmental Affairs with amendment, S. Rept. 99-347)

Federal Management Reorganization and Cost Control Act of 1986 - Title I: Improving Federal Management - Reorganizes the Office of Management and Budget (OMB) by establishing an Executive Deputy Director (currently Deputy Director), a Deputy Director for Management and Finance, and a Deputy Director for Budget. Sets forth the duties of the Deputy Director for Management and Finance, including general management improvement, human resources management, and productivity improvement. Assigns specified budget functions to the Deputy Director for Budget.

Establishes the Office of Financial Management in OMB to be headed by an Administrator who shall report directly to the Deputy Director for Management and Finance on Federal financial management policy.

Requires the Director of OMB, within one year of enactment of this Act, to transmit to the Congress: (1) a statement of objectives for the financial management activities of the Federal Government; and (2) a five-year plan to meet such objectives. Requires the Comptroller General to report to the Congress an analysis and comments on such plan.

Establishes the position of agency controller in each executive agency to conduct, supervise, and coordinate agency financial management functions.

Establishes in the executive branch the Federal Financial Management Council consisting of the Administrator for Financial Management and the agency controllers to assist the Director of OMB in attaining financial management objectives.

Directs the Administrator of the Office of Information and Regulatory Affairs to prepare, for State and local governments, cost estimates of compliance with significant Federal regulations. Requires the Administrator to report to the Congress on the methodology used for such estimates.

Authorizes appropriations to carry out this title.

Establishes the President's Commission on Leadership for Financial Management in the Federal Government to evaluate and make recommendations concerning the most appropriate organizational structure in the Executive Office of the President with respect to financial management leadership systems and reporting of Federal financial operations. Requires the Commission to report to the President and the Congress, not later than nine months after enactment of this Act, on its findings, conclusions, and recommendations. Requires the President, within 90 days of receiving such report, to report to the Congress on plans to implement such recommendations.

Terminates the Commission 30 days after it reports to the President and the Congress. Authorizes appropriations for the Commission.

Directs the President to submit an annual management report on the executive branch with the submission of each Federal budget. Directs the Comptroller General to transmit to the Congress an analysis of such report.

Title II: Accounting and Internal Control Systems - Requires the head of each executive agency to include in appropriation requests a statement on the extent to which the information in such request was generated or supported by accounting systems that conform to accounting principles and standards prescribed by the Comptroller General and related requirements of the Administrator for Financial Management.

Requires the Administrator to determine whether the accounting and internal control systems of each executive agency substantially comply with such principles and standards. Makes such systems subject to the direction and supervision of the Administrator if three years after the effective date of this Act the systems are not in compliance.

Title III: Agency Financial Statement - Requires the Comptroller General to consult with the Administrator in prescribing accounting standards and to provide a method for agencies to prepare financial statements.

Requires executive agencies to have such prepared statements by December 31 of each year. Requires financial and compliance audits of such statements for FY 1990 and 1991 and biennially thereafter, by the agency Inspector General, an independent internal or external auditor, or the Comptroller General (when deemed appropriate or upon the request of a congressional committee).

Requires reports on such audits to be submitted to the head of the agency, the Congress, the President, the Administrator, and the Comptroller General.

Directs the Administrator to submit a plan to the Congress for ensuring the completion of audits required for FY 1991. Grants the Administrator and the Comptroller General discretionary authority to conduct such audits more or less frequently than biennially, but at least triennially.

Sets forth provisions for annual audits of Government corporations by independent external auditors (in lieu of the Comptroller General's audit once every three years). Requires the submission of annual financial reports to the Congress, the President, the Administrator, the Secretary of the Treasury, and the Comptroller General.

Title IV: Cash Management - Sets forth provisions regarding intergovernmental financing. Provides for the agency disbursement of Federal funds in accordance with regulations prescribed by the Secretary of the Treasury, in consultation with the Administrator.

Authorizes the Secretary to issue regulations requiring a State to pay interest on funds from the time of deposit until disbursement. Requires the Government to pay interest to a State that disburses its own funds under a Federal program, unless such disbursements are the result of delays in the State program.

Directs the Secretary of the Treasury to study and make recommendations concerning standards for the establishment of lockbox systems for executive agencies. Defines such system as the use of locked post office boxes for the receipt of payments. Sets forth a schedule to implement such system.

Title V: Credit Management - Directs the head of each Federal agency to prepare comprehensive credit management and debt collection plans for submission to the Administrator for review.

Directs the Administrator to establish Federal credit management policies and promulgate implementing regulations.

Requires legislative proposals to enact new, or amend existing, credit programs to contain a statement of any subsidies in direct or guaranteed loan programs.

Requires that interest rates in new direct loan programs: (1) be related to market rates for comparable private sector loans programs; and (2) be adjusted annually to reflect changes in private sector rates.

Declares that loan and loan guarantee funds shall not be made available to applicants who have defaulted on a Federal loan or loan guarantee unless: (1) the new loan is necessary to protect the Government interest; (2) the default has been discharged under Federal bankruptcy laws; or (3) the default has been cured.

Describes default and acceleration clauses which shall be required for loan contracts.

Requires that each applicant for a Federal loan be provided a notice of collection policies.

Sets forth the information to be maintained by Federal agencies to administer and collect loans.

Directs the President to provide for a study to determine which direct loan programs could be carried out by private lending institutions without Government guarantees. Requires a report to the Congress on the results of such study with recommendations.

Requires each agency which operates credit programs to develop and identify collection targets as part of its budget request. Directs the Administrator to promulgate regulations setting the standards governing the manner in which agencies set such targets.

Requires each agency to develop and report to the Congressing delinquency and default rate standards for loan and loan guarantee programs.

Requires the use of credit bureaus and private collection agencies to recover indebtedness owed the Federal Government.

Provides for routine adjustments of Federal pay for non-controversial overpayments.

Amends the Internal Revenue Code to authorize agencies to use Internal Revenue Service information in debt collection.

Requires agencies to use administrative offset in debt collection.

Requires the inclusion of debt collection data in the budget process.

Title VI: Federal Information Policy - Revises current provisions regarding the management of Federal information resources and the coordination of Federal information policy.

Provides for the presidential nomination and Senate confirmation of the Administrator of the Office of Information and Regulatory Affairs.

Expands the authority of the Director to include statistical policy and coordination duties, and the appointment of a chief statistician.

Requires each agency to carry out the responsibilities under this title for implementing agency information management functions.

Revises information to be included in Federal Register notices regarding public information collection activities.

Requires the Federal Information Locator System to be designed to assist agencies and the public in locating existing Government information derived from information collection requests.

Requires the annual report of the Office of Federal Management to address agency information management initiatives and statistical policy and coordination functions. Requires the Director to submit a report to the Congress, at the time the President submits the budget for FY 1988, on funds requested for information resources management.

Authorizes appropriations to carry out the provisions of this title for FY 1987 through 1990.

Amends the Federal Property and Administrative Services Act of 1949 to establish the Information Technology Fund, consisting of the capital and assets of the Federal telecommunications fund and of the automatic data processing fund, and certain supplies and equipment transferred to the Administrator of General Services. Sets forth the authority of the Administrator under the Fund.

Authorizes the Director of OMB to hire employees as necessary to enable the Office of Information and Regulatory Affairs to carry out its functions under this Act.