I 111th CONGRESS 2d Session H. R. 5018 IN THE HOUSE OF REPRESENTATIVES April 14, 2010 Ms. Bean (for herself and Mr. Conaway) introduced the following bill; which was referred to the Committee on Oversight and Government Reform A BILL To amend title 31, United States Code, to direct the Director of the Office of Management and Budget to improve oversight of the single audit process, and for other purposes.

1.

Short title

This Act may be cited as the Government Audit Reform Act of 2010.

2.

Sense of Congress

It is the sense of Congress that the Director of the Office of Management and Budget should follow the recommendations of the Government Accountability Office report entitled Single Audit: Opportunities Exist to Improve the Single Audit Process and Oversight (GAO–09–307R), issued March 13, 2009.

3.

Oversight of the single audit process

(a)

Amendment to Single Audit Act

(1)

In general

Chapter 75 of title 31, United States Code, is amended by adding at the end the following new section:

7508.

Oversight and evaluation

(a)

Oversight and evaluation

The Director, or the head of the office or entity designated by the Director under subsection (c), shall monitor the risk, cost-benefit, efficiency, and effectiveness of the implementation by Federal agencies of this chapter by— (1)evaluating such implementation governmentwide; and (2)identifying additional guidance and resources necessary to improve such implementation, including revisions to regulations, best practices, and processes. (b)

Report

The Director, or the head of the office or entity designated by the Director under subsection (c), shall submit to the Committee on Homeland Security and Governmental Affairs of the Senate, the Committee on Oversight and Government Reform of the House of Representatives, and the Comptroller General of the United States a report that includes the findings under subsection (a). The report shall be submitted not later than September 30 of each year and shall cover the previous year. (c)

Designation of oversight entity

The Director of the Office of Management and Budget shall designate an office in the Office of Management and Budget or another Federal entity to act on behalf of the Director under subsection (a) and submit to the Committee on Homeland Security and Governmental Affairs of the Senate, the Committee on Oversight and Government Reform of the House of Representatives, and the Comptroller General of the United States a report that describes such office or entity and the resources made available to such office or entity to adequately implement the provisions of this section.

. (2)

Clerical amendment

The table of sections at the beginning of chapter 75 of title 31, United States Code, is amended by inserting after the item relating to section 7507 the following new item: 7508. Oversight and evaluation. . (b)

Simplified audit process

(1)

Evaluation

The Director, or the head of the office or entity designated by the Director under section 7508(c) of title 31, United States Code, shall evaluate the process for the single audit and the program-specific audit under chapter 75 of title 31, United States Code, to identify simplified alternatives for achieving the purposes of the Single Audit Act of 1984 (Public Law 98–502; 98 Stat. 2327; 31 U.S.C. 7501 note) and the Single Audit Act Amendments of 1996 (Public Law 104–156; 110 Stat. 1396; 31 U.S.C. 7501 note) for the audits of small recipients that also achieve the proper balance between risk and cost-effective accountability for small and large recipients. (2)

Report

Not later than 6 months after the date of the enactment of this Act, the Director, or the head of the office or entity designated by the Director under section 7508(c) of title 31, United States Code, shall submit to the Committee on Homeland Security and Governmental Affairs of the Senate, the Committee on Oversight and Government Reform of the House of Representatives, and the Comptroller General of the United States, a report on the results of the evaluation under paragraph (1). (3)

Definitions

In this subsection: (A)

Director

The term Director means the Director of the Office of Management and Budget. (B)

Large recipient

The term large recipient means a non-Federal entity that expends a total amount of Federal awards equal to or in excess of $300,000 or such other amount specified by the Director under section 7502(a)(3) of title 31, United States Code, in any fiscal year. (C)

Non-Federal entity

The term non-Federal entity has the meaning given that term under section 7501 of title 31, United States Code. (D)

Small recipient

The term small recipient means a non-Federal entity that expends a total amount of Federal awards of less than $300,000 or such other amount specified by the Director under section 7502(a)(3) of title 31, United States Code, in any fiscal year. (c)

Implementation of recommendations To improve audit quality

(1)

Evaluation

The Director of the Office of Management and Budget shall evaluate the implementation of the recommendations made to the Office of Management and Budget by the President’s Council on Integrity and Efficiency in the report entitled “Report on National Single Audit Sampling Project,” dated June 2007. (2)

Report

Not later than 6 months after the date of the enactment of this Act, the Director of the Office of Management and Budget shall submit to the Committee on Homeland Security and Governmental Affairs of the Senate, the Committee on Oversight and Government Reform of the House of Representatives, and the Comptroller General of the United States a report on the results of the evaluation under paragraph (1). (d)

Deadline for designation of oversight entity

Not later than 60 days after the date of the enactment of this Act, the Director of the Office of Management and Budget shall designate an office in the Office of Management and Budget or another Federal entity under section 7508(c) of title 31, United States Code.