Sec. 112. Establishment of Chief Financial Officer
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/bill/114/s/2676/is/section-112·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Effective on the date on which the Governor of a territory signs a resolution adopted by the legislature of the territory to request the establishment of a Fiscal Stability and Reform Board under this subtitle, an Office of the Chief Financial Officer is established for the territory, which shall be headed by the Chief Financial Officer of the territory. Effective with the appointment of the first Chief Financial Officer under subsection (d), the Chief Financial Officer may request other offices be consolidated within the office, subject to the approval of the applicable territory’s legislature, with the function and personnel of the offices transferred to the office.
Notwithstanding paragraph (2), the applicable territory shall retain its authority to appoint and remove personnel and agency heads of consolidated offices. An individual appointed to serve as a Chief Financial Officer— shall be subject to— the Federal conflict of interest requirements described in section 208 of title 18, United States Code, except with respect to subsection
(b)of that section; and the conflict of interest disclosure requirements under title I of the Ethics in Government Act of 1978 (5 U.S.C. App.); and shall not have any other conflict of interest relating to the duties of the Chief Financial Officer, including ownership of any debt security of— the applicable territorial government; or a territorial instrumentality. For purposes of subparagraph (A)(ii), the term conflict of interest includes the interests of an organization in which the individual is serving as officer, director, trustee, general partner or employee, or any person or organization with whom the individual is negotiating or has any arrangement concerning prospective employment. Any individual who serves as Chief Financial Officer shall not, during the 3-year period beginning on the date on which his or her tenure as Chief Financial Officer terminates, knowingly make, with the intent to influence, any communication to or appearance before any member of the Board or Chief Financial Officer on behalf of any other person (except the United States or a State or local government). Any individual who violates clause
(i)shall be subject to the penalties described in section 216 of title 18, United States Code. If a Chief Financial Officer is determined to be in violation of the requirements described in this subparagraph, the member shall be removed from the position of Chief Financial Officer and may be subject to additional actions or penalties set forth under Federal ethics rules. The Chief Financial Officer may appoint such staff as are necessary to enable the Office to perform the duties of the Office. For purposes of chapter 11 of title 18, United States Code, and section 2635 of title 5, Code of Federal Regulations, or any successor thereto, the executive director and other staff employed by the office shall be considered employees of an Executive agency (as defined in section 105 of title 5, United States Code), including a member of the staff who is— a private citizen; an employee of the applicable territorial government; or an employee of the Federal Government. On request of the Chief Financial Officer, the head of a Federal department or agency may detail to the Office, on a reimbursable or nonreimbursable basis, and in accordance with the Intergovernmental Personnel Act of 1970 ( 42 U.S.C. 4701 et seq. ), any of the personnel of the department or agency to assist the Office in the performance of the duties of the Office. On request of the Chief Financial Officer, the head of any department or agency of the applicable territorial government may detail to the Office, on a reimbursable or nonreimbursable basis, any of the personnel of the department or agency to assist the Office in the performance of the duties of the Office. The Chief Financial Officer— may use funds provided by the applicable territorial government to ensure sufficient funds are made available to cover all expenses of the Office; and shall submit to the Governor and legislature of the applicable covered territory for inclusion in the annual budget appropriations process of the applicable territorial government a report describing any request and use of funds provided by the applicable territorial government. A covered territory shall designate a dedicated territorial government source of funding, not subject to subsequent legislative appropriation, sufficient to support the annual costs of the Office, as determined by the Chief Financial Officer, to carry out this subtitle. The Chief Financial Officer shall be appointed by the applicable territory’s Governor as follows: Prior to the appointment of the Chief Financial Officer, the Board may submit recommendations for the appointment to the applicable territory’s Governor. In consultation with the Board and the applicable territory’s legislature, the applicable territory’s Governor shall nominate an individual for appointment and notify the applicable territory’s legislature of the nomination. After the expiration of the 7-day period that begins on the date the applicable territory’s Governor notifies the legislature of the nomination under subparagraph (B), the applicable territory’s Governor shall notify the Board of the nomination. The nomination shall be effective subject to approval by a majority vote of the Board. The Chief Financial Officer may be removed for cause by the Board or by the applicable territory’s Governor with the approval of the Board. The Chief Financial Officer shall be paid at an annual rate determined by the Board as the Board determines to be appropriate. The Chief Financial Officer may, for the purpose of performing the duties of the office, require, by subpoena or otherwise, the attendance and testimony of such witnesses and the production of such books, records, correspondence, memoranda, papers, documents, tapes, and materials as the Chief Financial Officer considers to be appropriate. A subpoena issued under paragraph (1)(B) shall— bear the signature of the Chief Financial Officer; and be served by any person or class of persons designated by the Chief Financial Officer to serve a subpoena under paragraph (1)(B). In the case of contumacy or failure to obey a subpoena issued under paragraph (1)(B), the United States district court for the district in which the subpoenaed person resides, is served, or may be found may issue an order requiring the person— to appear at any designated place to testify; or to produce documentary or other evidence. Any failure to obey the order of a court under this paragraph may be punished by the court as a contempt of court. The Chief Financial Officer, or any of the staff of the office on behalf of the Chief Financial Officer, may enter into such contracts as the Chief Financial Officer considers appropriate to carry out the duties of the office. In addition to any other duties necessary and proper to fulfill the purposes of the Office, the Chief Financial Officer shall have the following duties: The Chief Financial Officer, in consultation with the applicable territorial government, shall submit to the Board: A report not later than the date that is 7 days after the last day of each month to provide— an accounting of the cash balance of the applicable territorial government; and a description of the amount of actual expenditures and revenues of the applicable territorial government, as compared to the amounts budgeted, for the applicable fiscal year. Not later than the date that is 15 days after the last day of each quarter of a fiscal year, the Chief Financial Officer in consultation with the Governor of the applicable covered territory shall submit to the Board, in such form as the Board may require, a report describing— the actual cash revenues, cash expenditures, and cash flows of the territorial government for the preceding quarter; as compared to the actual cash revenues, cash expenditures, and cash flows contained in the approved budget for the applicable quarter. A report under subparagraph
(B)shall include— a description of any accrued revenues and expenditures during the applicable quarter, as compared to the accrued revenues and expenditures contained in the approved budget for the quarter; and a balance sheet, if the Board requires a balance sheet. Not later than the date that is 75 days before the date on which the Governor of the applicable covered territory is required under applicable law to submit to the legislature of the applicable covered territory a proposed budget for the upcoming fiscal year, the Chief Financial Officer shall submit to the applicable territorial government and Board a forecast of revenues for the upcoming fiscal year to be used to develop the budget. A forecast under paragraph
(2)shall be— based on applicable law; and prepared in accordance with the applicable Fiscal Plan. The Chief Financial Officer shall ensure the following: All financial information presented by the applicable territory is presented in a manner, and is otherwise consistent with any requirements promulgated by the Board. Appropriate procedures are implemented and institute such programs, systems, and personnel policies within the Officer's authority, to ensure that the applicable territory’s budget, accounting and personnel control systems and structures are synchronized for budgeting and control purposes on a continuing basis. Appropriate forms of receipts, vouchers, bills, and claims to be used by all agencies, offices, and instrumentalities of the applicable territorial government. The Chief Financial Officer shall: Supervise the applicable territory’s financial transactions to ensure adequate control of revenues and resources, and to ensure that appropriations are not exceeded. Maintain systems of accounting and internal control designed to provide— full disclosure of the financial impact of the activities of the applicable territorial government; adequate financial information needed by the applicable territorial government for management purposes; effective control over, and accountability for, all funds, property, and other assets of the applicable territorial government; and reliable accounting results to serve as the basis for preparing and supporting agency budget requests and controlling the execution of the budget of the applicable territorial government. Maintain accounting of all public funds belonging to or under the control of the applicable territorial government (or any department or agency of the applicable territorial government). Maintain accounting of all investment and invested funds of the applicable territorial government or in possession of the applicable territorial government in a fiduciary capacity. Submit to the applicable territorial government a financial statement of the applicable territorial government, containing such details and at such times as the applicable territorial government may specify. All contracts (whether directly or through delegation) shall be certified by the Chief Financial Officer prior to execution as to the availability of funds to meet the obligations expected to be incurred by the applicable territorial government under such contracts during the year. The Chief Financial Officer shall perform internal audits of accounts and operations and records of the applicable territorial 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 applicable territorial government.
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Sec. 112
Establishment of Chief Financial Officer
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