4 FAM 000
FINANCIAL MANAGEMENT POLICY, ORGANIZATION, AND ACCOUNTING PRINCIPLES AND
STANDARDS
4 FAM 010
FINANCIAL MANAGEMENT POLICY
(CT:FIN-446; 06-07-2018)
(Office of Origin: CGFS/FPRA/FP)
4 FAM 011 STATEMENT OF FINANCIAL
MANAGEMENT POLICY
(CT:FIN-363; 10-4-2004)
It is the policy of the Department to:
maintain effective financial management programs and systems
conduct a continuous program to improve financial operations and
systems and to identify more efficient methods of operations regarding
budgeting, accounting, financial reporting, and auditing
be responsive to management needs at the various levels of the
Department
be responsive to the financial reporting and other requirements
of both the executive and the legislative branches.
4 FAM 012 IMPLEMENTATION, SCOPE AND
RESPONSIBILITY FOR FINANCIAL MANAGEMENT
(CT:FIN-363; 10-4-2004)
Implementation procedures of the Departments financial
management policy, including the application of its accounting principles and
standards are published in 4 FAH-3. Supplemental instructions may be issued to
meet special circumstances or to address processes associated with specific
automated systems.
4 FAM 013 BASIC FINANCIAL MANAGEMENT
OBJECTIVES
(CT:FIN-363; 10-4-2004)
a. Internal management should employ an integrated
financial management system, including the accounting system as an essential
element that provides useful financial data to fulfill the requirements below effectively,
efficiently, and economically.
(1) Internal management requirements for financial
information regarding the day-to-day operations and for planning, programming,
budgeting, performance evaluation, and reporting.
(2) External requirements prescribed by:
(a) legislation;
(b) the Office of Management and Budget;
(c) Department of the Treasury; and
(d) other control agencies.
b. The Departments financial management program
provides for:
(1) Alignment of the Departments organization and
staff facilities to provide for the most effective conduct of the Departments
financial management;
(2) An effective accrual basis accounting system;
(3) A fully integrated financial system to record,
track, and reconcile all balance sheet accounts;
(4) Cost-based budgeting practices effectively
integrated with the accounts to provide adequate support, as required, for
budget requests;
(5) Simplification of appropriation and allotment
structures and development of the most effective methods of control of
appropriations, funds, obligations, expenditures, and costs;
(6) Consistency of classifications used for planning,
programming, budgeting, accounting reporting, and synchronization with the
Departments organization structure;
(7) Effective internal management control, including
internal auditing;
(8) Integration of accounting and reporting with the
requirements of the budget process and the central accounting and reporting to
the Department of the Treasury;
(9) Development of accurate and useful Departmental
reports on fiscal status, financial results of operations, and cost of
performance of assigned functions for internal and external use; and
(10) Education of personnel in effective maintenance
and maximum utilization of these management tools to effect economy in Department
operations.
4 FAM 014 BASIC AUTHORITIES
(CT:FIN-446; 06-07-2018)
The principal statutory requirements which underlie the
Departments financial management policies and systems are:
(1) The Department of State Basic Authorities Act (22
U.S.C. 2651 et seq.), establishes the Department of State as an arm of the
executive branch, providing for its organization, functions, and administrative
authority;
(2) The Federal Property and Administrative Services
Act of 1949 (generally 40 U.S.C. Subtitle 1,
and Public Law 111-350) requires agencies
to maintain adequate inventory control, accountability, and management systems
for property under their control;
(3) Budget and Accounting Procedures Act of 1950, as
amended (31 U.S.C. 3512), establishes the congressional policy on the purposes
and need for an adequate accounting system and financial reporting. This Act
sets forth the responsibilities of each executive agency, the Comptroller
General, the Office of Management and Budget, and the Treasury Department for
the implementation of these policies;
(4) 31 U.S.C. 1501 sets forth the criteria that govern
the recording, documentation and reporting of financial transactions as
obligations;
(5) Foreign Service Act of 1980, as amended (22 U.S.C.
Secs. 3901 et seq.) includes provisions specific to the Department affecting
fiscal and substantive responsibilities, that in turn affect financial
management;
(6) 31 U.S.C. 3512(b) and (c) require that internal
accounting and administrative controls of each executive agency shall be
established in accordance with standards prescribed by the Comptroller General,
and shall provide reasonable assurances that:
(a) obligations and costs are in compliance with
applicable law;
(b) funds, property, and assets are safeguarded against
waste, loss, unauthorized use, or misappropriation; and
(c) revenue and expenditures applicable to agency
operations are properly recorded and accounted for to permit the preparation of
accurate and reliable financial and statistical reports and to maintain
accountability over the assets.
(7) Prompt Payment Act of 1982, as amended (31 U.S.C.
Secs. 3901 et seq.) requires Executive departments and agencies to make
payments on time, to pay interest penalties when payments are late, and to take
discounts only when payments are made on or before the discount date. These
laws provide for timely payment, better relationships with contractors,
improved competition for Government business, and reduced costs to the
Government for property and services;
(8) The Anti-Deficiency Act (31 U.S.C. 1341, 1514 and
1517), provides that obligations and/or expenditures not exceed amounts
appropriated or apportioned, or amounts allotted for administrative control;
(9) Chief Financial Officers Act of 1990, Public Law
101-576 (31 U.S.C. 901-903), established Chief Financial Officers (CFOs) with
broad authorities over financial management for executive departments and major
agencies. It requires the preparation and audit of financial statements for
revolving funds, trust funds and commercial activities administered by
government agencies. CFOs must submit annual reports on the status of
financial management within their organizations as well as a five-year
financial management plan to improve financial policies, personnel and systems;
(10) Cash Management Improvement Act of 1990, as
amended (31 U.S.C. 3335 and 31 U.S.C. 6501 and 6503) governs the timely
disbursement of Federal funds. Each agencys payments to other agencies are
subject to interest if not paid within prompt payment deadlines;
(11) Federal Credit Reform Act of 1990, Public Law
101-508 (2 U.S.C. 661) established requirements to measure more accurately the
costs of Federal credit programs;
(12) Debt Collection Procedures Act of 1990, Public Law
101-647 (28 U.S.C. 3001-3015, 3101-3105) provided the Department of Justice
with enhanced debt litigation capability, including standard Federal civil
procedures for recovering judgments on debt and obtaining pro-judgment
remedies;
(13) 31 U.S.C. 1552, 1553, 1555 and 1557 set rules for
determining the availability of appropriation and fund balances and established
the procedures for closing appropriation and fund accounts. These sections
limited expenditures from appropriation accounts to five years from the date of
the original appropriation;
(14) The Government Performance and Results Act of
1993, Public Law 103-62 (5 U.S.C. 306) requires agencies to develop 5-year
strategic plans that describe the mission, goals, and objectives of the agency
as well as the strategies for accomplishing the plan. Pursuant to 31 U.S.C.
1115 and 1116, agencies are required to submit an annual performance plan and
an annual performance report, respectively;
(15) The Government Management Reform Act of 1994
streamlines management controls in agencies reporting to Congress through OMB;
(16) The Federal Financial Management Act of 1994, at
section 405 (31 U.S.C. 3515) requires agencies covered by the CFO Act to
prepare annual, agency wide financial statements. In addition, this Act, at
section 402 (31 U.S.C. 3332) requires Federal payments to be made
electronically;
(17) The Federal Financial Management Improvement Act
of 1996, Public Law 104-208, Secs. 801-808 (31 U.S.C. 3512 note) requires U.S.
Government agencies to use the standard general ledger, prepare financial
statements in accordance with generally accepted accounting principles, and to
ensure financial management systems meet specified standards;
(18) The Debt Collection Improvement Act of 1996,
Public Law 104-134 (31 U.S.C. Secs. 3701, 3711, 3716, and 3720A) authorizes
and requires actions to maximize collections of delinquent debts, minimize
costs of collection, reduce losses, and inform the public of these procedures;
(19) The Reports Consolidation Act of 2000, Public Law
106-531, at section 3(a) (31 U.S.C. 3516) authorizes the consolidation of
financial and performance management reports into a single report. This action
will provide financial and performance management information in a more
meaningful and useful format for the President, Congress, and the public; and
(20) The Improper Payments Information Act of 2002,
Public Law 107-300, requires Federal agencies to provide for estimates of
improper payments and report on actions to reduce them.
4 FAM 015 THROUGH 019 UNASSIGNED