Sec. 6. Failure of the Department of Defense to obtain audits with unqualified opinion of fiscal year 2018 financial statements
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If the Department of Defense fails to obtain an audit with an unqualified opinion on its general fund statement of budgetary resources for fiscal year 2018 by December 31, 2018: Effective as of January 1, 2019, the authority in section 4(a) shall cease to be available to the Department of Defense for fiscal year 2018 and any fiscal year thereafter. Effective as of April 1, 2019: Section 132a of title 10, United States Code, is amended to read as follows: There is a Chief Management Officer of the Department of Defense, appointed from civilian life by the President, by and with the advice and consent of the Senate.
Any individual nominated for appointment as Chief Management Officer shall be an individual who has— extensive executive level leadership and management experience in the public or private sector; strong leadership skills; a demonstrated ability to manage large and complex organizations; and a proven record in achieving positive operational results. The Chief Management Officer shall perform such duties and exercise such powers as the Secretary of Defense may prescribe. The Chief Management Officer is the Chief Management Officer of the Department of Defense.
In serving as the Chief Management Officer of the Department of Defense, the Chief Management Officer shall be responsible for the management and administration of the Department of Defense with respect to the following: The expenditure of funds, accounting, and finance. Procurement, including procurement of any enterprise resource planning
(ERP)system and any information technology
(IT)system that is a financial feeder system, human resources system, or logistics system. Facilities, property, nonmilitary equipment, and other resources. Strategic planning, annual performance planning, and identification and tracking of performance measures. Internal audits and management analyses of the programs and activities of the Department, including the Defense Contract Audit Agency. Such other areas or matters as the Secretary of Defense may designate. The head of the Defense Contract Audit Agency shall be under the supervision of, and shall report directly to, the Chief Management Officer. The Chief Management Officer takes precedence in the Department of Defense after the Secretary of Defense and the Deputy Secretary of Defense. . Section 131(b) of title 10, United States Code, is amended— by striking paragraph (3); by redesignating paragraph
(2)as paragraph (3); and by inserting after paragraph
(1)the following new paragraph (2): The Chief Management Officer of the Department of Defense. . Section 132 of such title is amended— by striking subsection (c); and by redesignating subsections
(d)and
(e)as subsections
(c)and (d), respectively. Section 133(e)(1) of such title is amended by striking and the Deputy Secretary of Defense and inserting , the Deputy Secretary of Defense, and the Chief Management Officer of the Department of Defense . Such title is further amended by inserting the Chief Management Officer of the Department of Defense, after the Deputy Secretary of Defense, each place it appears in the provisions as follows: Section 133(e)(2). Section 134(c). Section 137a(d) of such title is amended by striking the Secretaries of the military departments, and all that follows and inserting the Chief Management Officer of the Department of Defense, the Secretaries of the military departments, and the Under Secretaries of Defense. . Section 138(d) of such title is amended by striking the Secretaries of the military departments, and all that follows through the period and inserting the Chief Management Officer of the Department of Defense, the Secretaries of the military departments, the Under Secretaries of Defense, and the Director of Defense Research and Engineering. . The table of sections at the beginning of chapter 4 of such title is amended by striking the item relating to section 132a and inserting the following new item: 132a. Chief Management Officer. . Section 5313 of title 5, United States Code, is amended by adding at the end the following: Chief Management Officer of the Department of Defense. . Any reference in any provision of law to the Chief Management Officer of the Department of Defense shall be deemed to refer to the Chief Management Officer of the Department of Defense under section 132a of title 10, United States Code (as amended by this paragraph). Effective as of April 1, 2019: Jurisdiction of the Defense Finance and Accounting Service
(DFAS)is transferred from the Department of Defense to the Department of the Treasury. The Secretary of the Treasury shall administer the Defense Finance and Accounting Service following transfer under this paragraph through the Financial Management Service of the Department of the Treasury. The Secretary of Defense and the Secretary of the Treasury shall jointly enter into a memorandum of understanding regarding the transfer of jurisdiction of the Defense Finance and Accounting Service under this paragraph. The memorandum of understanding shall provide for the transfer of the personnel and other resources of the Service to the Department of the Treasury and for the assumption of responsibility for such personnel and resources by the Department of the Treasury. Nothing in this paragraph shall be construed as terminating, altering, or revising any responsibilities or authorities of the Defense Finance and Accounting Service (other than responsibilities and authorities in connection with the exercise of jurisdiction of the Service following transfer under this paragraph).