0101 Overview

This chapter establishes the Department of Veterans Affairs’ (VA) overarching strategy for the establishment and operation of the Chief Financial Officers Council (CFOC).

Key Points covered in this chapter include:

• Assistant Secretary for Management and Chief Financial Officer (ASM/CFO) will use the Chief Financial Officer Council (CFOC) to facilitate Department-wide discussions, review recommendations, and implement improvements for effective financial management and control within the Department;
• VA’s ASM/CFO is the chairperson of the CFOC;
• The CFOC will include representatives from VA’s three Administrations, and selected staff offices; and
• CFOC members are responsible for attending and participating in CFOC meetings and for implementing Department financial management improvements.

0102 Revisions

Section	Revision	Office	Reason for Change	Effective Date
Various	New Policy	OFP	New Policy	November 2024

0103 Definitions

Accounting Standards or Principles – A common set of accounting principles, standards, rules, and concepts issued by a rule-setting body, governing how accounting transactions are to be recorded and reported. The Federal Accounting Standards Advisory Board (FASAB) is an example of a rule-setting body.

0104 Roles and Responsibilities

Assistant Secretary for Management and Chief Financial Officer (ASM/CFO) oversees all financial management activities relating to the Department’s programs and operations, as required by the Chief Financial Officers Act of 1990 and 38 U.S.C. §309. Responsibilities include the direction, establishment, management, and provision of policy guidance and oversight of VA’s financial management personnel, activities, and operations. In addition, the ASM/CFO or designee is responsible for participating and providing input into subordinate CFOs interview and selection panels, performance plans, and evaluations.

Administration and Staff Office Chief Financial Officers, Fiscal Officers and Other Financial Officials are responsible for assisting and cooperating with the ASM/CFO in carrying out VA’s financial responsibilities, providing input to Department-wide financial discussions, and implementing improvements for effective financial management and control within the Department.

0105 Policies

010501 General Policies

1. The ASM/CFO will utilize the Chief Financial Officers Committee (CFOC) to facilitate Department-wide discussions, review recommendations, and implement improvements for effective financial management and control.
2. CFOC members will implement the financial initiatives of the Department.

010502 CFOC Responsibilities

1. CFOC will advise the ASM/CFO on matters such as; programming, budgeting, capital asset management, audit status, internal controls, fraud waste and abuse (FWA), improper payments, financial management, and financial policy.
2. CFOC will collaborate to develop long-term financial priorities consistent with VA’s strategic goals and objectives. Council members will coordinate with Executive Leadership within the Administrations and Staff Offices to implement CFO and CFOC priorities.
3. CFOC members will review and provide recommendations to the ASM/CFO on financial matters.
4. CFOC members will:
   • Recommend to the ASM/CFO agency financial management activities and priorities that align with VA’s strategic plan;
   • Coordinate and carry out annual requirements on programming, budgeting, capital asset management, and the financial audit;
   • Monitor execution of budget resources required to effectively operate, maintain, and enhance VA programs;
   • Implement financial policies and procedures to ensure compliance with all applicable laws and regulations;
   • Remediate annual financial audit deficiencies;
   • Ensure VA has a highly qualified cadre of financial management professionals;
   • Ensure VA’s efforts to identify and reduce improper payments align with legislative and executive guidance;
   • Enhance VA-wide efforts to combat FWA through improved prevention and detection activities;
   • Support the financial management systems modernization effort;
   • Promote collaboration and community building for sharing best practices, transferring knowledge, and developing a unified approach for addressing VA financial challenges; and
   • Participate as a leader of the broader VA community to help foster cross-organizational collaboration and shared solutions above and beyond organizational silos.
5. In preparation for CFOC meetings, members will:
   • Propose CFOC meeting agenda topics;
   • Review agendas and associated briefing materials and present their specific functional area concerns and relevant information;
   • Identify issues and communicate risks and concerns associated with programming, budgeting, capital asset management, financial operations, internal control, financial policy, financial management systems, and audit resolution, in a clear, concise, and timely manner to the Council;
   • Invite Subject Matter Experts (SMEs) or appropriate leadership, as necessary, to present at Council meetings on issues relating to financial management issues;
   • Ask and answer questions before the meeting, if possible, so the Council can exercise effective use of the time provided;
   • Concerns/objections will be voiced at the meetings, not afterwards;
   • Make fiscally responsible decisions and recommendations; and
   • Take actions furthering commitment to transparency in government and ensure consistency with Department policy and objectives.
6. The CFOC will focus on facts and data. Any comments, concerns or objections must be substantiated by evidence and are not to be speculative.
7. CFOC members (or their designees) will attend all regularly scheduled CFOC meetings. If the member cannot attend, he or she will appoint a designee to act in his or her place for that meeting.

010503 CFOC Membership

1. ASM/CFO is the chairperson of the CFOC and will appoint members as necessary.  See membership listing in Appendix A.
2. The CFOC will be comprised of representatives from VA senior management, VA’s three Administrations, and selected staff offices. Active membership is essential to effective Council governance.
3. When called into special session for topics such as the Statement of Assurance, FWA prevention, or improper payments, senior leaders/accountable officials involved in these activities may be invited to attend.
4. Subject matter experts (SME) may be invited to attend all or part of a Council meeting when their expertise is deemed important to the deliberations at hand.
5. Membership will be reviewed during January of each year.

010504 CFOC Meetings

1. CFOC will meet on a scheduled proposed by the ASM/CFO.
2. The Office of Management (OM) will distribute the agenda and supporting materials prior to each meeting.
3. OM will serve as the liaison office to manage topics and/or actions that may be time sensitive.
4. The ASM/CFO may convene special meetings or establish a sub-committee when necessary to discuss and decide on governance issues such as; the Statement of Assurance, FWA, improper payments, or other relevant topics.
5. ASM/CFO will:
   • Call for and set agendas for Council meetings;
   • Invite SMEs or appropriate leadership, as necessary, to make presentations on matters such as; programming, budget, capital management, audit-related matters, financial and operational internal controls, FWA, improper payments, financial policies, financial management systems, or other financial management issues;
   • Develop a strategic approach for improvements in financial management;
   • Ensure collaboration and provide direction to achieve integration with organizations across VA;
   • Report on Department-level issues, risks, and mitigation strategies;
   • Communicate business process changes and Government-wide initiatives that impact financial management across VA;
   • Bring critical financial management topics for decision; and
   • Provide guidance and/or decisions when briefed on issues relating to items such as; programming, budgeting, capital asset management, internal controls, FWA, improper payments, financial operations, and financial policy issues.

010505 ASM/CFO Responsibilities for Hiring and Performance Evaluations for Subordinate CFOs

1. The ASM/CFO or designee within the Office of Management will participate in the interview and selection panels of subordinate CFOs.
2. The ASM/CFO or designee within the Office of Management will provide input into the performance plans and performance evaluations of subordinate CFOs.
3. Positions considered to be subordinate CFOs are: Chief Financial Officer Veterans Health Administration; Chief Financial Officer Office of Community Care; Chief Financial Officer Veterans Integrated Service; Chief Financial Officer Veterans Benefits Administration; All Chief Financial Officers of organizational subdivisions representing business lines within Veterans Benefits Administration; Chief Financial Officer of the National Cemetery Administration; and Chief Financial Officer of the Office of Information and Technology.

0106  Authority and References

• United States Code
  • 31 U.S.C. §901 Chief Financial Officers Act of 1990
  • 38 U.S.C. §309
• Public Law 116-315
• Federal Accounting Standards Advisory Board (FASAB)
  • Financial Accounting Standards Board
  • FASAB Handbook of Federal Accounting Standards and Other Pronouncements
  • FASAB Statement of Federal Financial Accounting Standards 34, the Hierarchy of  Generally Accepted Accounting Principles
  • Statement of Federal Financial Accounting Standards  (SFFAS) 34, The Hierarchy of Generally Accepted Accounting Principles, including the  Application of Standards Issued by the Financial Accounting Standards Board.
• Office of Management and Budget (OMB)
  • OMB Circular A-123, Management’s Responsibility for Enterprise Risk Management and Internal Control, Appendix A, Internal Control over Financial Reporting
  • OMB Circular A-123, Management’s Responsibility for Enterprise Risk Management and Internal Control, Appendix D, Compliance with Federal Financial Management Improvement Act of 1996
  • OMB Circular A-134, Financial Accounting Principles and Standards OMB Circular A-136 – Financial Reporting Requirements
• National Archives and Records Administration (NARA)
• VA Directive 0000, Delegation of Authority, Nov. 14, 2018

0107  Rescissions

None

Appendix A: CFOC Membership

Organization	Role	Title
Office of Management (OM)	Chair, Tie breaking vote	Assistant Secretary for Management (ASM)/Chief Financial Officer (CFO)
Office of Management (OM)	Co-Chairperson	Principal Deputy Assistant Secretary for Management and VA Deputy (CFO)
Office of Construction & Facilities Management (CFM)	Voting Member	Associate Executive Director, Office of Resource Management
Office of Budget (OB)	Voting Member	DAS for Budget
Office of Information and Technology (OI&T)	Voting Member	DAS for IT Resource Management
Veterans Benefits Administration (VBA)	Voting Member	VBA CFO
National Cemetery Administration (NCA)	Voting Member	NCA CFO
Veterans’ Health Administration (VHA)	Voting Member	VHA CFO
Board of Veteran Appeals (BVA)	Voting Member	Vice Chairman for the Board of Veterans’ Appeals
Office of Electronic Health Record Modernization (OEHRM)	Voting Member	OEHRM CFO
Office of General Counsel (OGC)	Advisory Member	Deputy General Counsel, General Law