[Congressional Record Volume 170, Number 186 (Monday, December 16, 2024)]
[House]
[Pages H7211-H7212]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
{time} 1800
FINANCIAL MANAGEMENT RISK REDUCTION ACT
Mr. BURLISON. Mr. Speaker, I move to suspend the rules and pass the
bill (S. 4716) to amend section 7504 of title 31, United States Code,
to improve the single audit requirements.
The Clerk read the title of the bill.
The text of the bill is as follows:
S. 4716
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 ``Financial Management Risk
Reduction Act''.
SEC. 2. SINGLE AUDIT IMPROVEMENTS.
Section 7504 of title 31, United States Code, is amended--
(1) in subsection (a)--
(A) in paragraph (1), by striking ``, and'' and inserting a
semicolon;
(B) in paragraph (2), by striking the period at the end and
inserting a semicolon; and
(C) by adding at the end the following:
``(3) participate in and furnish information for the review
under subsection (e); and
``(4) identify recipients that expend $300,000 or more in
Federal awards or such other amount specified by the Director
under section 7502(a)(3) during the recipient's fiscal year
but did not undergo an audit in accordance with this
chapter.'';
(2) in subsection (c)--
(A) in paragraph (1), by adding ``and'' at the end;
(B) by striking paragraph (2); and
(C) by redesignating paragraph (3) as paragraph (2); and
(3) by adding at the end the following:
``(d) Not later than 2 years after the date of enactment of
this subsection, and every 2 years thereafter, the Director
shall submit to the Committee on Homeland Security and
Governmental Affairs of the Senate and the Committee on
Oversight and Accountability of the House of Representatives
a report listing the recipients identified under subsection
(a)(4).
``(e)(1) The Director shall designate 1 or more Federal
agencies to conduct a Government-wide analysis of single
audit quality, which may include a consideration of the
results of reviews of single audit quality by--
``(A) Federal agencies;
``(B) inspectors general of Federal agencies;
``(C) State auditors; and
``(D) external peer reviews conducted in accordance with
generally accepted government auditing standards.
``(2) Not later than 3 years after the date of enactment of
this subsection, and every 6 years thereafter, the Federal
agencies designated under paragraph (1) shall complete a
Government-wide analysis of single audit quality.
``(3) The Director shall submit to the Committee on
Homeland Security and Governmental Affairs of the Senate and
the Committee on Oversight and Accountability of the House of
Representatives and make publicly available a summary of the
results of each review under paragraph (2).
``(f) Not later than 2 years after the date of enactment of
this subsection--
``(1) the Administrator of General Services, in
coordination with the Director, the Council on Federal
Financial Assistance (or any successor thereto), and key
management single audit liaisons of Federal agencies
designated as described in section 200.513 of title 2, Code
of Federal Regulations (or any successor thereto), shall
develop analytic tools to use audit data in the Federal
clearinghouse to identify cross-Governmental risks to Federal
award funds; and
``(2) the Director, in coordination with the Administrator
of General Services, the Council on Federal Financial
Assistance (or any successor thereto), and key management
single audit liaisons of Federal agencies designated as
described in section 200.513 of title 2, Code of Federal
Regulations (or any successor thereto), shall develop a
strategy to use audit data in the Federal clearinghouse to
identify cross-Governmental risks to Federal award funds.
``(g) Not later than 4 years after the date of enactment of
this subsection, the Comptroller General of the United States
shall complete an evaluation of--
``(1) the effectiveness of the strategy and analytic tools
developed under subsection (f);
``(2) reporting burdens for auditors and audited entities
and the capacity of auditors and audited entities to fulfill
the requirements under this chapter; and
``(3) the responsiveness of Federal agencies to repeat
single audit findings and corrective action plans.''.
SEC. 3. NO ADDITIONAL FUNDS.
No additional funds are authorized to be appropriated to
carry out this Act or the amendments made by this Act.
[[Page H7212]]
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Missouri (Mr. Burlison) and the gentleman from Maryland (Mr. Raskin)
each will control 20 minutes.
The Chair recognizes the gentleman from Missouri.
General Leave
Mr. BURLISON. Mr. Speaker, I ask unanimous consent that all Members
may have 5 legislative days in which to revise and extend their remarks
and include extraneous material on this measure.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Missouri?
There was no objection.
Mr. BURLISON. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I rise in support of the Financial Management Risk
Reduction Act of 2024, which will improve the quality and completeness
of financial audit data of large Federal grant recipients.
If an entity receives Federal financial assistance from the Federal
Government, we should be able to closely review their financial
statements and expenditures of Federal funds to ensure that every
transaction is legitimate.
I thank my House Oversight Committee colleague, Representative
Marjorie Taylor Greene, for leading the House companion of this bill.
Mr. Speaker, I urge my colleagues to support this sensible reform,
and I reserve the balance of my time.
Mr. RASKIN. Mr. Speaker, I yield myself such time as I may consume.
I rise in support of S. 4716, the Financial Management Risk Reduction
Act, led by my esteemed colleague, Chairman Gary Peters of the Senate
Committee on Homeland Security and Governmental Affairs, with Senator
Ron Johnson as his co-lead. I also thank Representative Greene for
leading the House companion.
Mr. Speaker, it appears financial management risk reduction is,
indeed, an issue that speaks to everybody on both sides of the aisle.
The bill would improve the quality and usability of independent audit
data and enhance oversight of Federal funds.
The Single Audit Act of 1984 requires Federal grant recipients that
receive more than $750,000 to report an independent audit of their
internal financial controls annually to the government. It sought to
increase accountability while reducing burden on grant recipients by
mandating a single, consolidated audit rather than audits on a discrete
grant-by-grant basis. In 2022, over 40,000 State, local, Tribal, and
territorial governments and not-for-profits submitted single audits.
The Financial Management Risk Reduction Act addresses recommendations
made by the GAO, which were aimed at increasing the usability of single
audit information to reduce Federal financial management risk. The bill
codifies certain portions of OMB's Uniform Grants Guidance requiring
agencies to conduct quality control reviews on its audits and directs
OMB to coordinate a governmentwide audit quality review every 6 years.
Finally, the bill would direct OMB to create a governmentwide
strategy on financial risk regarding single audits and instructs GSA to
create analytic tools to use single audit data more effectively.
This is a good bill that will improve the quality and accessibility
of audit data, increasing the transparency and accountability of
Federal spending.
Mr. Speaker, I urge passage of the legislation, and I yield back the
balance of my time.
Mr. BURLISON. Mr. Speaker, I urge my colleagues to support this bill,
which will improve the quality and completeness of financial audit data
of large Federal grant recipients, and I yield back the balance of my
time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Missouri (Mr. Burlison) that the House suspend the rules
and pass the bill, S. 4716.
The question was taken; and (two-thirds being in the affirmative) the
rules were suspended and the bill was passed.
A motion to reconsider was laid on the table.
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