[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 2133 Reported in Senate (RS)]

<DOC>





                                                       Calendar No. 391
114th CONGRESS
  2d Session
                                S. 2133

                          [Report No. 114-229]

  To improve Federal agency financial and administrative controls and 
 procedures to assess and mitigate fraud risks, and to improve Federal 
  agencies' development and use of data analytics for the purpose of 
 identifying, preventing, and responding to fraud, including improper 
                               payments.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 5, 2015

Mr. Reid (for Mr. Carper (for himself, Mr. Tillis, Mrs. McCaskill, Mr. 
 Johnson, Ms. Baldwin, and Ms. Ayotte)) introduced the following bill; 
which was read twice and referred to the Committee on Homeland Security 
                        and Governmental Affairs

                             March 15, 2016

               Reported by Mr. Johnson, without amendment

_______________________________________________________________________

                                 A BILL


 
  To improve Federal agency financial and administrative controls and 
 procedures to assess and mitigate fraud risks, and to improve Federal 
  agencies' development and use of data analytics for the purpose of 
 identifying, preventing, and responding to fraud, including improper 
                               payments.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Fraud Reduction and Data Analytics 
Act of 2015''.

SEC. 2. DEFINITIONS.

    In this Act--
            (1) the term ``agency'' has the meaning given the term in 
        section 551 of title 5, United States Code; and
            (2) the term ``improper payment'' has the meaning given the 
        term in section 2(g) of the Improper Payments Information Act 
        of 2002 (31 U.S.C. 3321 note).

SEC. 3. ESTABLISHMENT OF FINANCIAL AND ADMINISTRATIVE CONTROLS RELATING 
              TO FRAUD AND IMPROPER PAYMENTS.

    (a) Guidelines.--
            (1) In general.--Not later than 90 days after the date of 
        enactment of this Act, the Director of the Office of Management 
        and Budget, in consultation with the Comptroller General of the 
        United States, shall establish guidelines for agencies to 
        establish financial and administrative controls to identify and 
        assess fraud risks and design and implement control activities 
        in order to prevent, detect, and respond to fraud, including 
        improper payments.
            (2) Contents.--The guidelines described in paragraph (1) 
        shall incorporate the leading practices identified in the 
        report published by the Government Accountability Office on 
        July 28, 2015, entitled ``Framework for Managing Fraud Risks in 
        Federal Programs''.
            (3) Modification.--The Director of the Office of Management 
        and Budget, in consultation with the Comptroller General of the 
        United States, may periodically modify the guidelines described 
        in paragraph (1) as the Director and Comptroller General may 
        determine necessary.
    (b) Requirements for Controls.--The financial and administrative 
controls required to be established by agencies under subsection (a) 
shall include--
            (1) conducting an evaluation of fraud risks and using a 
        risk-based approach to design and implement financial and 
        administrative control activities to mitigate identified fraud 
        risks;
            (2) collecting and analyzing data from reporting mechanisms 
        on detected fraud to monitor fraud trends and using that data 
        and information to continuously improve fraud prevention 
        controls; and
            (3) using the results of monitoring, evaluation, audits, 
        and investigations to improve fraud prevention, detection, and 
        response.
    (c) Reports.--
            (1) In general.--Except as provided in paragraph (2), for 
        each of the first 3 fiscal years beginning after the date of 
        enactment of this Act, each agency shall submit to Congress, as 
        part of the annual financial report of the agency, a report on 
        the progress of the agency in--
                    (A) implementing--
                            (i) the financial and administrative 
                        controls required to be established under 
                        subsection (a);
                            (ii) the fraud risk principle in the 
                        Standards for Internal Control in the Federal 
                        Government; and
                            (iii) Office of Management and Budget 
                        Circular A-123 with respect to the leading 
                        practices for managing fraud risk;
                    (B) identifying risks and vulnerabilities to fraud, 
                including with respect to payroll, beneficiary 
                payments, grants, large contracts, and purchase and 
                travel cards; and
                    (C) establishing strategies, procedures, and other 
                steps to curb fraud.
            (2) First report.--If the date of enactment of this Act is 
        less than 180 days before the date on which an agency is 
        required to submit the annual financial report of the agency, 
        the agency may submit the report required under paragraph (1) 
        as part of the following annual financial report of the agency.

SEC. 4. WORKING GROUP.

    (a) Establishment.--Not later than 180 days after the date of 
enactment of this Act, the Office of Management and Budget shall 
establish a working group to improve--
            (1) the sharing of financial and administrative controls 
        established under section 3(a) and other best practices and 
        techniques for detecting, preventing, and responding to fraud, 
        including improper payments; and
            (2) the sharing and development of data analytics 
        techniques.
    (b) Composition.--The working group established under subsection 
(a) shall be composed of--
            (1) the Controller of the Office of Management and Budget, 
        who shall serve as Chairperson; and
            (2) the Chief Financial Officer of each agency.
    (c) Consultation.--The working group established under subsection 
(a) shall consult with Offices of Inspectors General and Federal and 
non-Federal experts on fraud risk assessments, financial controls, and 
other relevant matters.
    (d) Meetings.--The working group established under subsection (a) 
shall hold not fewer than 4 meetings per year.
    (e) Plan.--Not later than 270 days after the date of enactment of 
this Act, the working group established under subsection (a) shall 
submit to Congress a plan for the establishment and use of a Federal 
interagency library of data analytics and data sets, which can 
incorporate or improve upon existing Federal resources and capacities, 
for use by agencies and Offices of Inspectors General to facilitate the 
detection, prevention, and recovery of fraud, including improper 
payments.
                                                       Calendar No. 391

114th CONGRESS

  2d Session

                                S. 2133

                          [Report No. 114-229]

_______________________________________________________________________

                                 A BILL

  To improve Federal agency financial and administrative controls and 
 procedures to assess and mitigate fraud risks, and to improve Federal 
  agencies' development and use of data analytics for the purpose of 
 identifying, preventing, and responding to fraud, including improper 
                               payments.

_______________________________________________________________________

                             March 15, 2016

                       Reported without amendment