Section 4. The governor shall appoint the secretary of administration and finance. He shall serve at the pleasure of the governor, shall receive such salary as the governor may determine and shall devote his full time to the duties of his office. Except in the cases of the agencies named in section four G, he shall be responsible for the exercise of all powers and the performance of all duties assigned by law to the executive office for administration and finance or to any division, bureau or other administrative unit or agency under said office. He shall be the executive and administrative head of said office and every division, bureau, section and other administrative unit and agency within said office other than the agencies named in section four G shall be under his direction, control and supervision.

The commissioner shall act as the executive officer of the governor, in all matters pertaining to the financial, administrative, planning, and policy coordinating functions and affairs of the departments, commissions, offices, boards, divisions, institutions and other agencies within the executive department. He shall inquire into the business affairs of the commonwealth and the laws governing the same; shall supervise program planning and the coordination of the activities and programs of the commonwealth in its dealings with the federal government; shall review and report to the governor and the general court on all proposed legislation affecting the organization, structure, efficiency and administrative functions, services, procedures and practices of the departments, commissions, offices, boards, divisions institutions and other agencies, or any of them, under the executive department; shall conduct studies of the operations of said agencies with a view to effecting improvements in administrative organization, procedures, and practices and to promote economy, efficiency and the avoidance of useless labor and expenses in the said agencies; shall, subject to the approval of the governor, make such rules, regulations and orders as he deems appropriate to regulate and govern the manner and method of the distribution and disposition of audit reports from the department of the state auditor and the house and senate committees on post audit and oversight to all public agencies which are the subjects of such audit reports and shall have such other powers and duties as shall be assigned to him by law and which may from time to time be assigned to him by the governor in accordance with law.

The secretary shall appoint a budget director. She shall be a person of ability and experience and shall devote her entire time to the duties of her office. The budget director may establish, with the approval of the secretary, administrative units that she deems appropriate. The budget director shall prepare and maintain financial plans and, under the general direction of and on behalf of the governor, shall prepare operating budget recommendations for all departments, offices, commissions and institutions which receive periodic appropriations from the commonwealth. These plans and recommendations shall be prepared according to the requirements of chapter 29. Subject to the approval of the secretary, the budget director shall design and install, and may revise from time to time, a financial planning and budgeting system, including the requisite forms, procedures, information, computer software and such other attributes as she considers necessary.