[Congressional Record Volume 162, Number 55 (Tuesday, April 12, 2016)]
[Senate]
[Page S1981]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




             FRAUD REDUCTION AND DATA ANALYTICS ACT of 2015

  Mr. McCONNELL. Mr. President, I ask unanimous consent that the Senate 
proceed to the immediate consideration of Calendar No. 391, S. 2133.
  The PRESIDING OFFICER. The clerk will report the bill by title.
  The senior assistant legislative clerk read as follows:

       A bill (S. 2133) 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.

  There being no objection, the Senate proceeded to consider the bill.
  Mr. McCONNELL. Mr. President, I ask unanimous consent that the 
Carper-Tillis amendment be agreed to; the bill, as amended, be read a 
third time and passed, and the motion to reconsider be considered made 
and laid upon the table with no intervening action or debate.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment (No. 3684) was agreed to, as follows:

                     (Purpose: To improve the bill)

       On page 5, line 24, strike ``and'' at the end.
       On page 5, line 25, strike the period and insert ``; and''.
       On page 5, after line 25, add the following:
       (3) any other party determined to be appropriate by the 
     Director of the Office of Management and Budget, which may 
     include the Chief Information Officer, the Chief Procurement 
     Officer, or the Chief Operating Officer of each agency.

  The bill (S. 2133), as amended, was ordered to be engrossed for a 
third reading, was read the third time, and passed, as follows:

                                S. 2133

       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;
       (2) the Chief Financial Officer of each agency; and
       (3) any other party determined to be appropriate by the 
     Director of the Office of Management and Budget, which may 
     include the Chief Information Officer, the Chief Procurement 
     Officer, or the Chief Operating 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.

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