Chairman
Linda W. Cropp
Councilmember Jack
Evans
A BILL
IN THE COUNCIL OF
THE DISTRICT OF COLUMBIA
Chairman Linda W. Cropp
and Councilmember Jack Evans, introduced the following bill, which was
referred to the Committee of the Whole with comments from the Committee on
Finance and Revenue.
To change the name of
the Office of Budget and Management to the Office of Budget and Planning,
to change the name of the Department of Finance and Revenue to the Office
of Tax and Revenue, to change the name of the Office of Treasurer to the
Office of Finance and Treasury, to consolidate the Office of the
Controller and the Office of Financial Information Services into the
Office of Financial Operations and Systems; to authorize the Chief
Financial Officer to appoint all Deputy Chief Financial Officers, to
authorize the Mayor to appoint the Chief Financial Officer with the advice
and consent of the Council, to establish a four-year term for the Chief
Financial Officer beginning with July 1, 2002, to provide that the Chief
Financial Officer may be removed for cause with the approval of 2/3rds of
the Members of the Council present and voting, to authorize the Chief
Financial Officer to promulgate financial management performance standards
for all executive branch agency chief financial officers, to give the
Chief Financial Officer power to discharge any executive branch agency
chief financial officer who does not meet the financial management
performance standards, to require agency heads to appoint agency chief
financial officers from a list developed by the Chief Financial Officer,
to require the Chief Financial Officer to prepare fiscal impact statements
for all legislation that the Mayor submits to the Council; and to require
the Chief Financial Officer to submit his analysis and certification of
funds for all collective bargaining agreements and nonunion pay increases.
BE IT ENACTED BY THE
COUNCIL OF THE DISTRICT OF COLUMBIA, That this act may be cited as the
"Independence of the Chief Financial Officer Establishment Act of
2001"
Sec. 2.
Establishment of the Office of the Chief Financial Officer.
(a) There is hereby established within the executive branch of the
government of the District of Columbia an Office of the Chief Financial
Officer of the District of Columbia ("Office"), which shall be
headed by the Chief Financial Officer of the District of Columbia
("Chief Financial Officer").
(b) The Office shall include the Office of Finance and Treasury, which
shall be headed by the Treasurer of the District of Columbia, who shall be
appointed by the Chief Financial Officer and subject to the Chief
Financial Officer's direction and control.
(c) The name of the Office of Budget and Management is changed to the
Office of Budget and Planning. The name of the Department of Finance and
Revenue is changed to the Office of Tax and Revenue. The name of the
Office of Treasurer is changed to the Office of Finance and Treasury. The
Office of the Controller and the Office of Financial Information Services
is consolidated into the Office of Financial Operations and Systems.
(d) Effective with the appointment of the first Chief Financial Officer
under section 4, the functions and personnel of the following subordinate
offices are transferred to the Office:
(1) The Office of Budget and Planning, headed by the Deputy Chief
Financial Officer for the Office of Budget and Planning;
(2) The Office of Tax and Revenue, headed by the Deputy Chief
Financial Officer for the Office of Tax and Revenue;
(3) The Office of
Research and Analysis, headed by the Deputy Chief Financial
Officer for the
Office of Research and Analysis; and
(4) The Office of
Financial Operations and Systems, headed by the Deputy Chief Financial
Officer for the Office of Financial Operations and Systems.
Sec. 3. Appointment and
removal of Office employees.
The Chief Financial Officer shall appoint the heads of the subordinate
offices designated in section 2(d), after consultation with the Mayor and
the Council. The Chief Financial Officer may remove the heads of the
offices designated in section 2(d), after consultation with the Mayor and
the Council.
Sec. 4. Appointment of
the Chief Financial Officer.
(a) The Chief Financial
Officer shall be appointed by the Mayor with the advice and consent by
resolution of the Members of the Council.
(b) The term of office
of the Chief Financial Officer shall be 4 years. The term of the Chief
Financial Officer first appointed pursuant to subsection (a) of this
section shall begin on July 1, 2003, which shall become the anniversary
date for all subsequent appointments. Thereafter, any successor shall be
appointed for a term of 4 years, or for the balance of any unexpired term.
Any Chief Financial Officer may continue to serve beyond his term until a
successor takes office.
(c) Any vacancy in the
Office of Chief Financial Officer shall be filled in the same manner as
the original appointment under subsection (a) of this section.
(d) The Chief Financial
Officer shall be paid at an annual rate determined by the Mayor, except
that such rate may not exceed the rate of basic pay payable for level IV
of the Executive Schedule.
Sec. 5. Removal of the
Chief Financial Officer.
The Chief Financial
Officer may only be removed for cause by the Mayor and approval of the
removal by resolution approved by two-thirds of the Members of the Council
present and voting.
See. 6. Duties of the
Chief Financial Officer.
The Chief Financial
Officer shall have the following duties:
(1) Preparing the
financial plan and the budget for the use of the Mayor for purposes of
subpart B of subchapter VII of Chapter 3 of Title 47 of the D.C. Code;
(2) Preparing the
budgets of the District of Columbia for the year for the use of the
Mayor for purposes of §§ 47-101, 47-301 to 47-305, § 445, Title 11,
appendix, §§ 43-1691, 47-310, 47-312, 47-130, 1-1130, 31-104,
47-304.1, 47-117, and 47-231 to 47-235;
(3) Assuring that all
financial information presented by the Mayor is presented in a manner,
and is otherwise consistent with, the requirements of the District of
Columbia Financial Responsibility and Management Assistance Act of 1995;
(4) Implementing
appropriate procedures and instituting such programs, systems, and
personnel policies within the Officer's authority, to ensure that
budget, accounting and personnel control systems and structures are
synchronized for budgeting and control purposes on a continuing basis;
(5) Preparing and
submitting to the Mayor and the Council:
(A) Annual estimates
of all revenues of the District of Columbia (without regard to the
source of such revenues), including proposed revenues, which shall be
binding on the Mayor and the Council for purposes of preparing and
submitting the budget of the District government
for the year under §§ 47-101, 47-301 to 47-305, § 445, Title 11,
appendix, §§ 43-1691, 47-310, 47-312, 47-130, 1-1130, 31-104,
47-304.1, 47-117, and 47-231 to 47-235, except that the Mayor and the
Council may prepare the budget based on estimates of revenues which
are lower than those prepared by the Chief Financial Officer; and
(B) Quarterly
re-estimates of the revenues of the District of Columbia during the
year;
(6) Supervising and
assuming responsibility for financial transactions to ensure adequate
control of revenues and resources, and to ensure that appropriations are
not exceeded;
(7) Maintaining
systems of accounting and internal control designed to provide:
(A) Full disclosure of
the financial impact of the activities of the District to
government;
(B) Adequate
financial information needed by the District government for management
purposes;
(C) Effective
control over, and accountability for, all funds, property, and other
assets of the District of Columbia; and
(D) Reliable
accounting results to serve as the basis for preparing and supporting
agency budget requests and controlling the execution of the budget;
(8) Submitting to the
Council a financial statement of the District government, containing
such details and at such times as the Council may specify;
(9) Supervising and
assuming responsibility for the assessment of all property subject to
assessment and special assessments within the corporate limits of the
District of Columbia for taxation, preparing tax maps, and providing
such notice of taxes and special assessments
(as may be required by law);
(10) Supervising and
assuming responsibility for the levying and collection of all taxes,
special assessments, licensing fees, and other revenues of the District
of Columbia (as may be required by law), and receiving all amounts paid
to the District of Columbia from any source (including the Authority);
(11) Maintaining
custody of all public fends belonging to or under the control of the
District government (or any department or agency of the District
government), and depositing all amounts paid in such depositories and
under such terms and conditions as may be designated by the Council;
(12) Maintaining
custody of all investment and invested funds of the District government
or in possession of the District government in a fiduciary capacity, and
maintaining the safekeeping of all bonds and notes of the District
government and the receipt and delivery of District government bonds and
notes for transfer, registration, or exchange;
(13) Apportioning the
total of all appropriations and funds made available during the year for
obligation so as to prevent obligation or expenditure in a manner which
would result in a deficiency or a need for supplemental appropriations
during the year, and (with respect to appropriations and funds available
for an indefinite period and all authorizations to create obligations by
contract in advance of appropriations) apportioning the total of such
appropriations, funds, or authorizations in the most effective and
economical manner;
(14) Certifying all
contracts and leases (whether directly or through delegation) prior to
execution as to the availability of funds to meet the obligations
expected to be incurred by the District government under such contracts
and leases during the year;
(15) Prescribing the
forms of receipts, vouchers, bills, and claims to be used by ail
agencies, offices, and instrumentalities of the District government;
(16) Certifying and
approving prior to payment all bills, invoices, payrolls, and other
evidences of claims, demands, or charges against the District
government, and determining the regularity, legality, and correctness of
such bills, invoices, payrolls, claims, demands, or charges;
(17) In coordination
with the Inspector General of the District of Columbia, performing
internal audits of accounts and operations and records of the District
government, including the examination of any accounts or records of
financial transactions, giving due consideration to the effectiveness of
accounting systems, internal control, and related administrative
practices of the departments and agencies of the District government;
(18) Exercising
responsibility for the administration and supervision of the District of
Columbia Treasurer (except that the Chief Financial Officer may delegate
any portion of such responsibility as the Chief Financial Officer
considers appropriate and consistent with efficiency);
(19) Administering all
borrowing programs of the District government for the issuance of
long-term and short-term indebtedness;
(20) Administering the
cash management program of the District government, including the
investment of surplus funds in governmental and non-governmental
interestbearing securities and accounts;
(21) Administering the
centralized District government payroll and retirement systems;
(22) Governing the
accounting policies and systems applicable to the District government;
(23) Preparing
appropriate annual, quarterly, and monthly financial reports of the accounting
and financial operations of the District government;
(24) Not later than
120 days after the end of each fiscal year, preparing the complete
financial statement and report on the activities of the District
government for such fiscal year, for the use of the Mayor under §
47-310(a)(4);
(25) Preparing fiscal
impact statements on legislation, regulations, multiyear contracts
and contracts over $1 million, in a form required by the Council, which
shall be transmitted to the Council by the Mayor or independent agency
for introduction and other fiscal impact
statements at such times as the Council directs;
(26) Preparing under
the direction of the Mayor, who has the specific responsibility
for formulating budget policy using CFO technical and human resources,
the budget
for submission by the Mayor to the Council and upon final adoption to
the Congress; and
(27) Certifying all
collective bargaining agreements and nonunion pay proposals prior
to submission to the Council for approval as to the availability of
fluids to meet the obligations
expected to be incurred by the District government under such collective
bargaining agreements and nonunion pay proposals during the year.
Sec. 7. Appointment of
certain executive branch agency chief financial officers.
(a) The chief financial
officers of all District of Columbia executive branch subordinate and
independent agencies not included in section 2(d) shall be appointed by
the individual agency
head. The appointments shall be made from a list of qualified candidates
developed by the Chief Financial Officer.
(b) The agency chief
financial officers shall be paid at an annual rate determined by the
agency head, in consultation with the Chief Financial Officer.
(c) The agency head shall measure the performance of an agency chief
financial officer with respect to support for the agency mission
operations. The Chief Financial Officer shall measure the performance of
agency chief financial officers with respect to knowledge and application
of financial management standards.
(d) The Chief Financial Officer shall promulgate regulations containing
the financial management performance standards for agency chief financial
officers that shall address the type of expertise such officers shall have
of the financial management systems and require that agency chief
financial officers be members of the Council of Chief Financial Officers
and other professional accreditation or membership organizations.
(e) Failure to meet the financial management performance standards, within
the 12-month period of the notice of the final adoption of the standards
promulgated pursuant to subsection (c) of this section, may be cause for
removal of an agency chief financial officer.
Sec. 8. Removal of
certain executive branch agency chief financial officers.
An agency chief financial officer may be subject to disciplinary action
for cause as required by section 1651 of the District of Columbia
Government Comprehensive Merit Personnel Act of 1978, effective June 10,
1998 (D.C. Law 12-124; D.C. Code § 1-617.51), by the Chief Financial
Officer, in consultation with the agency head, or by the agency head with
the approval of the Chief Financial Officer.
Sec. 9. Functions
of Treasurer.
At all times, the
Treasurer shall have the following duties:
(1) Assisting the
Chief Financial Officer in reporting revenues received by the District
government, including submitting annual and quarterly reports concerning
the cash position of the District government not later than 60 days after
the last day of the quarter (or year) involved. Such reports shall
include:
(A) Comparative reports of revenue and other receipts by source, including
tax, nontax, and Federal revenues, grants and reimbursements, capital
program loans, and advances. Each source shall be broken down into
specific components;
(B) Statements of the cash flow of the District government for the
preceding quarter or year, including receipts, disbursements, net changes
in cash inclusive of the beginning balance, cash and investment, and the
ending balance, inclusive of cash and investment. Such statements shall
reflect the actual, planned, better or worse dollar amounts and the
percentage change with respect to the current quarter, year-to-date, and
fiscal year;
(C) Quarterly cash flow forecast for the quarter or year involved,
reflecting receipts, disbursements, net change in cash inclusive of the
beginning balance, cash and investment, and the ending balance, inclusive
of cash and investment with respect to the actual dollar amounts for the
quarter or year, and projected dollar amounts for each of the 3 succeeding
quarters;
(D) Monthly reports reflecting a detailed summary analysis of all District
of Columbia government investments, including, but not limited to:
(i)
The total of long-term and short-term investments;
(ii) A
detailed summary analysis of investments by type and
amount, including
purchases, sales (maturities), and interest;
(iii) An analysis of
investment portfolio mix by type and amount, including liquidity,
quality/risk of each security, and similar information;
(iv) An analysis of
investment strategy, including near-term strategic plans and
projects of investment activity, as well as forecasts of future investment
strategies based on
anticipated market conditions, and similar information; and
(v) An analysis of cash utilization, including:
(I) Comparisons of
budgeted percentages of total cash to be invested with
actual percentages of cash invested and the dollar amounts;
(II) Comparisons of the next return on invested cash
expressed in percentages (yield) with comparable market indicators and
established District of Columbia government yield objectives; and
(III) Comparisons of
estimated dollar return against actual dollar yield; and
(E)
Monthly reports reflecting a detailed summary analysis of
long-term and short-term borrowings inclusive of debt as authorized by § 47-313, in
the current fiscal year and the amount of debt for each succeeding fiscal year not to exceed 5
years; all such reports shall reflect:
(i) The amount of debt outstanding by type of instrument;
(ii) The amount of authorized and un-issued debt, including
availability of short-term lines of credit, United States Treasury
borrowings, and similar information;
(iii) A maturity
schedule of the debt;
(iv) The rate of interest payable upon the debt; and
(v) The amount of debt service requirements and related debt
service reserves;
and
(2) Such other functions assigned to the Chief Financial Officer under §
47-317.3 as the Chief Financial Officer may delegate.
Sec. 10.
Authorization to privatize tax administration and collection.
The Chief Financial Officer of the District of Columbia may enter into
contracts with a private entity for the administration and collection of
taxes of the District of Columbia.
Sec. 11. Transition provisions.
(a) Any Chief
Financial Officer appointed by the Mayor prior to the effective date of
this act may continue to
serve until July 1, 2003, or until a new appointment under section 4(a)
becomes effective, whichever occurs later.
(b) Any executive branch agency chief financial officer appointed prior to
the effective date of this act may continue to serve at the pleasure of
the Chief Financial Officer.
(c) Notwithstanding any other law, all District of Columbia accounting,
budget, and financial management personnel, not included in section 2(d),
shall only be subject to disciplinary action for cause as required by
section 1651 of the District of Columbia Government Comprehensive Merit
Personnel Act of 1978, effective June 10, 1998 (D.C. Law 12-124; D.C. Code
§1-617.51).
Sec. 12. Fiscal
impact statement.
The Council adopts
the fiscal impact statement in the committee report as the fiscal
impact statement
required by section 602(c)(3) of the District of Columbia Home Rule Act,
approved December 24, 1973 (87 Stat. 813; D.C. Code § 1-233(c)(3)).
Sec.
13. Effective date.
This act shall take effect on the later of: (1)
completion of a 30-day-period of Congressional review, as provided in
section 602(c)(1) of the District of Columbia Home Rule Act, approved
December 24, 1973 (87 Stat. 813; D.C. Code § 1-233(c)(1)), following
approval by the Mayor (or in the event of veto by the Mayor, action by the
Council to override the veto), approval by the Financial Responsibility
and Management Assistance Authority as provided in section 203(a) of the
District of Columbia Financial Responsibility and Management Assistance
Act of 1995, approved April 17, 1995 (109 Stat. 116; D.C. Code §
47-392.3(a)), and publication in the District of Columbia Register; or (2)
enactment by Congress of a repeal of section 424 of the District of
Columbia Home Rule Act.
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COMPARISON OF CFO AUTHORITY UNDER HRA § 424
AND
THE PROPOSED BILL
SUBJECT |
HOME RULE ACT |
PROPOSED BILL |
Establishment of the
OCFO |
Kept all existing functions |
Statutorily renames 4 offices that were
renamed by the CFO per
CFO Orders 97-11,
97-12, 97-13, and 97-14. See 44 DCR 2345.
Changes the Office of
Budget and
Management to the Office of Budget & Planning; changes the
Department of
Finance and Revenue to the Office of Tax & Revenue; changes the
name of the
Office of Treasurer to the Office of Finance and Treasury, and
combines the Office
of the Controller and the Office of Financial Information Services
into a single
office with the new name of Office of Financial Operations and
Systems. 44 DCR
2345. |
Appointment of the CFO
|
During a control year,
appointment by the Mayor,
recommendations from the
Financial Authority, Council
to be notified and consulted
of nomination for a 7-day
period, subject to approval
by majority of Authority.
|
Appointment by the Mayor
with the advice and consent of the
Council by resolution.
|
Appointment of CFO
|
During a noncontrol year,
appointment by the Mayor congressional layover or comment.
with the advice and consent
of the Council, with a 30-
day congressional layover & comment period
for nomination
after Council confirmation. |
No distinction between
control year and noncontrol year. No
provision for congressional layover or comment.
|
Removal of the
CFO - during a
control year. |
Financial Authority can remove for cause or the
Mayor with the approval of
the Financial Authority. |
Removal by the Mayor for cause and approval of removal by resolution
approved by 2/3rds of Council (present and voting). |
Removal of the CFO - during a
noncontrol year. |
Mayor can remove for cause with approval of dismissal
by a 2/3rds vote of the
Council, with a 30-day
layover & comment period
after approval of dismissal
by the Council. |
No distinction between control year and noncontrol year. Removal by the Ma
for cause and approval of removal by resolution approved by 2/3rds of
Council (present and voting). |
Term of CFO Appointment |
No term - serve at pleasure |
4 year term beginning July 1, 2003. |
Holdover Provision for CFO |
none provided |
Allows CFO to continue to serve beyond term until a successor takes
office. |
Salary of the CFO |
Salary not to exceed pay for
level IV of the Executive
Schedule |
Same language - no change. |
Appointment of Office Heads -
Office of the Budget & Dept. of
Finance & Revenue |
Appointment by the Mayor, with the advice and consent of the Council, subject to
approval by the Financial
Authority during a control
year. |
Appointment by the CFO in consultation with the Mayor
and Council. |
Appointment of Office Heads
-
Office of Financial Information
Services & Controller |
Appointment by the CFO subject to the approval of the Mayor and the Financial
Authority |
Appointment by the CFO in consultation with the Mayor
and Council. |
Removal of Office Heads -
Office of the Budget & Depart.
of Finance and Revenue |
Financial Authority could remove for cause during a
control year, after
consultation with Mayor |
Removal by the CFO
in consultation with the Mayor and Council. |
Removal of Office Heads -
Office of Financial Information
Services & Controller |
CFO could remove for cause, after consultation with the Mayor |
Removal by the CFO in
consultation with the Mayor and Council. |
Appointment of executive
agency CFOs |
|
Appointment by agency head from a list of persons
supplied by the CFO. §7(a) |
Performance Review of Agency
CFOs |
No provision |
Agency head measures performance
with respect to fulfillment of agency mission. CFO measures performance re: financial reporting standards. §7(b) |
Written Standards for Agency
CFOs |
No provision |
Authorizes the CFO to promulgate
regulations containing performance standards. §7(c). Failure to meet standards within 12-months of promulgation is
grounds for
dismissal. §7(d). |
Functions of the CFO |
24 items listed - some tied to
control year and noncontrol
year. |
Expanded duties to 27
items with no distinction in functions between control and noncontrol years. Adds duty of preparing
fiscal impact statements for measures submitted by the executive branch for introduction at the Council,
and other
measures requested by the Council; clarifies the role of the CFO in the
preparation
of the budget with the Mayor retaining the power with respect to budget
policy and
the CFO performing the financial statistics for the budget; and requiring
the CFO to
certify the existence of funding for all collective bargaining and
nonunion pay
proposals prior to submission to the Council. Still working on resolving
the
overlapping duties given the Mayor in HRA § 422 and those listed here for
the
CFO. §6. |
Functions of the Treasurer |
Kept the same |
no change made §8. |
Authority to Privatize Tax
Functions. |
National Capital Revitalization Act - same |
No change made. §9. |
Transition Provisions |
None provided. Converted career employees
performing
accounting, budget and
financial management to "at-will" status during a control
period. |
Allows incumbent CFO to
continue to serve until person appointed under
the act -- July 1, 2003 or until successor is appointed. §10(a). Same
grandfather provision for any Assistant or Deputy Chief Financial Officer
assigned to an executive agency. § 10(b). Clarifies the
classification status of accounting, budget, and financial management personnel - they
have returned to career status since control period has ended. § 10(c). |
PREPARED
BY THE OFFICE OF THE GENERAL COUNSEL
JUNE
4, 2001
|