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DEPARTMENT OF HEALTH & HUMAN SERVICES
FEB 13 1991
Office of the Secretary
The Honorable Richard G. Darman
Dear Mr. Darman:
The Chief Financial Officers (CFO) Act of 1990 (HR 5607) requires Executive Branch agencies to produce audited financial statements for all trust funds, revolving funds, and accounts having substantial commercial activity starting as of the end of fiscal year 1991. Included in the CFO Act is a provision, section 3515(e) (3), that allows the Director of the Office of Management and Budget (OMB) to waive the requirement for preparation and/or audit of fiscal year 1991 financial statements.
Washington, D.C. 20201
Our Department has made an assessment of all accounts, programs and activities that fall within the scope of the legislation. is attached at Enclosure A and requires coverage of 60 accounts which represent 80% of our outlays. We are making an early effort to aggressively engage in the preparation and audit of financial statements for those activities covered by the CFO Act. Our desire was to begin the process in FY 1991. Towards this end, we and our Inspector General have jointly developed a plan. However, the Administration's request for 1991 funding of this effort did not materialize.
Our present strategy takes into consideration major variables that affect early implementation of the legislation. The first is the absence of funding. The President's FY 1992 budget includes funding that will allow us to make major progress. A second variable involves the size and complexity of program activities.
We are now pursuing a phase-in strategy that will, by necessity, require some deferment in implementation. Accordingly, we must request OMB waiver for some of the CFO Act's requirements. revised plan is as follows:
For FY 1991 we will continue the preparation and audit of all seven program activities of the Social Security Administration which account for $253 billion. These include:
Payments to Social Security Trust Funds,
Supplemental Security Income Program,
Special Benefits for Disabled Coal Miners,
Payments for Credits against Social Security
Federal Old-Age and Survivors Insurance Trust
Federal Disability Insurance Trust Fund and
Limitation on Administrative Expense: (SSA).
In addition, we will prepare and audit statements for the Office of the Secretary Working Capital Fund.
For FY 1991 we will begin in FY 1991 to phase-in
As new resources arrive in FY 1992, they will allow us to produce FY 1992 financial statements that will be audited for all HHS accounts (60) falling within the purview of the CFO Act.
It should be noted that for FY 1991, HHS will have audited financial statements incorporating a minimum of 56% of HHS outlays and in excess of $250 billion dollars. For FY 1992 over 50% of HHS accounts will be included in audited financial statements. That will incorporate approximately 80% of the Department's outlays, the remainder of which falls outside the scope established by the CFO Act.
Based upon the aforementioned plan, and in accordance with the waiver provision of the CFO Act, I am requesting a waiver of the preparation and audit of the FY 1991 financial statements as described above and as itemized in Enclosure B.
If there are questions regarding our phase-in plan or waiver request, your staff should feel free to contact Dennis Fischer, Deputy Assistant Secretary for Finance (202-245-2084).
ANALYSIS OF HHS ACCOUNTS UNDER THE CHIEF FINANCIAL OFFICER LEGISLATION
FDA Salaries and Expenses, FDA
Appropriation Account Title
`HRSA Health Resources and Services
Salaries and Expenses, FDA (Royalties)
Rental Payments (FDA)
Buildings and Facilities, FDA
Revolving Fund for Certification and Other Services
Cooperative Research and Development Agreements (FDA)
|Health Professions & Nursing Student Loans (HRSA)
Medical Facilities Guarantee and Loan Fund
Health Professions Graduate Student Loan Fund
Nurse Training Fund
Health Professions Education Fund
Vaccine Injury Compensation
Vaccine Improvement Program Trust Fund
Public Health Service Conditional Gift Fund, HRSA
|Indian Health Services
Indian Health Services (Medicare/Medicaid)
Disease Control, Research, and Training
Cooperative Research and Development Agreements (CDC)
|National Library of Medicine
John E. Fogarty International Center
National Institute on Aging
National Institute on Aging (Royalties)
National Institute of Child Health and Human Development
National Inst of Child Health & Human Dev (Royalties)
Office of the Director, NIH
Office of the Director, NIH (Royalties)
National Cancer Institute
National Cancer Institute (Royalties)
National Institute of General Medical Sciences
National Institute of Environmental Health Sciences
National Institute of Environmental Health Sciences (Royaltles)
Consolidated Working Fund (Grants for Research, IHS)
Rents and Charges/Operation and Maintenance of Quarters (IHS) |75X5071
Outlays in FY 89 Code
726.658 1,761,135 63,756
1. Revolving Funds
2. Trust Funds
3. Pilot Program
4. Substantial Commercial Activity
5. Not Covered by Law
6. Not an Active Account
(1.011) 4 55,810,665