    [United States Statutes at Large, Volume 124, 111th Congress, 2nd Session]
    [From the U.S. Government Publishing Office, www.gpo.gov]

    Public Law 111-204
    111th Congress

    An Act

    To amend the Improper Payments Information Act of 2002 (31 U.S.C. 3321
    note) in order to prevent the loss of billions in taxpayer
    dollars. <>

    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 ``Improper Payments Elimination and
    Recovery Act of 2010''.
    SEC. 2. IMPROPER PAYMENTS ELIMINATION AND RECOVERY.

    (a) Susceptible Programs and Activities.--Section 2 of the Improper
    Payments Information Act of 2002 (31 U.S.C. 3321 note) is amended by
    striking subsection (a) and inserting the following:
    ``(a) Identification of Susceptible Programs and Activities.--
    ``(1) In general.-- <> The head of each
    agency shall, in accordance with guidance prescribed by the
    Director of the Office of Management and Budget, periodically
    review all programs and activities that the relevant agency head
    administers and identify all programs and activities that may be
    susceptible to significant improper payments.
    ``(2) Frequency.-- <> Reviews under
    paragraph (1) shall be performed for each program and activity
    that the relevant agency head administers during the year after
    which the Improper Payments Elimination and Recovery Act of 2010
    is enacted and at least once every 3 fiscal years thereafter.
    For those agencies already performing a risk assessment every 3
    years, agencies may apply to the Director of the Office of
    Management and Budget for a waiver from the requirement of the
    preceding sentence and continue their 3-year risk assessment
    cycle.
    ``(3) Risk assessments.--
    ``(A) Definition.--In this subsection the term
    `significant' means--
    ``(i) except as provided under clause (ii),
    that improper payments in the program or activity
    in the preceding fiscal year may have exceeded--
    ``(I) $10,000,000 of all program or
    activity payments made during that
    fiscal year reported and 2.5 percent of
    program outlays; or
    ``(II) $100,000,000; and
    ``(ii) with respect to fiscal years following
    September 30th of a fiscal year beginning before
    fiscal year 2013 as determined by the Office of
    Management

    [[Page 2225]]

    and Budget, that improper payments in the program
    or activity in the preceding fiscal year may have
    exceeded--
    ``(I) $10,000,000 of all program or
    activity payments made during that
    fiscal year reported and 1.5 percent of
    program outlays; or
    ``(II) $100,000,000.
    ``(B) Scope.--In conducting the reviews under
    paragraph (1), the head of each agency shall take into
    account those risk factors that are likely to contribute
    to a susceptibility to significant improper payments,
    such as--
    ``(i) whether the program or activity reviewed
    is new to the agency;
    ``(ii) the complexity of the program or
    activity reviewed;
    ``(iii) the volume of payments made through
    the program or activity reviewed;
    ``(iv) whether payments or payment eligibility
    decisions are made outside of the agency, such as
    by a State or local government;
    ``(v) recent major changes in program funding,
    authorities, practices, or procedures;
    ``(vi) the level, experience, and quality of
    training for personnel responsible for making
    program eligibility determinations or certifying
    that payments are accurate; and
    ``(vii) significant deficiencies in the audit
    report of the agency or other relevant management
    findings that might hinder accurate payment
    certification.''.

    (b) Estimation of Improper Payments.--Section 2 of the Improper
    Payments Information Act of 2002 (31 U.S.C. 3321 note) is amended by
    striking subsection (b) and inserting the following:
    ``(b) Estimation of Improper Payments.--With respect to each program
    and activity identified under subsection (a), the head of the relevant
    agency shall--
    ``(1) produce a statistically valid estimate, or an estimate
    that is otherwise appropriate using a methodology approved by
    the Director of the Office of Management and Budget, of the
    improper payments made by each program and activity; and
    ``(2) include those estimates in the accompanying materials
    to the annual financial statement of the agency required under
    section 3515 of title 31, United States Code, or similar
    provision of law and applicable guidance of the Office of
    Management and Budget.''.

    (c) Reports on Actions To Reduce Improper Payments.--Section 2 of
    the Improper Payments Information Act of 2002 (31 U.S.C. 3321 note) is
    amended by striking subsection (c) and inserting the following:
    ``(c) Reports on Actions To Reduce Improper Payments.--With respect
    to any program or activity of an agency with estimated improper payments
    under subsection (b), the head of the agency shall provide with the
    estimate under subsection (b) a report on what actions the agency is
    taking to reduce improper payments, including--
    ``(1) a description of the causes of the improper payments,
    actions planned or taken to correct those causes, and the

    [[Page 2226]]

    planned or actual completion date of the actions taken to
    address those causes;
    ``(2) in order to reduce improper payments to a level below
    which further expenditures to reduce improper payments would
    cost more than the amount such expenditures would save in
    prevented or recovered improper payments, a statement of whether
    the agency has what is needed with respect to--
    ``(A) internal controls;
    ``(B) human capital; and
    ``(C) information systems and other infrastructure;
    ``(3) if the agency does not have sufficient resources to
    establish and maintain effective internal controls under
    paragraph (2)(A), a description of the resources the agency has
    requested in its budget submission to establish and maintain
    such internal controls;
    ``(4) program-specific and activity-specific improper
    payments reduction targets that have been approved by the
    Director of the Office of Management and Budget; and
    ``(5) a description of the steps the agency has taken to
    ensure that agency managers, programs, and, where appropriate,
    States and localities are held accountable through annual
    performance appraisal criteria for--
    ``(A) meeting applicable improper payments reduction
    targets; and
    ``(B) establishing and maintaining sufficient
    internal controls, including an appropriate control
    environment, that effectively--
    ``(i) prevent improper payments from being
    made; and
    ``(ii) promptly detect and recover improper
    payments that are made.''.

    (d) Reports on Actions To Recover Improper Payments.--Section 2 of
    the Improper Payments Information Act of 2002 (31 U.S.C. 3321 note) is
    amended--
    (1) by striking subsection (e);
    (2) by redesignating subsections (d) and (f) as subsections
    (f) and (g), respectively; and
    (3) by inserting after subsection (c) the following:

    ``(d) Reports on Actions To Recover Improper Payments.--With respect
    to any improper payments identified in recovery audits conducted under
    section 2(h) of the Improper Payments Elimination and Recovery Act of
    2010 (31 U.S.C. 3321 note), the head of the agency shall provide with
    the estimate under subsection (b) a report on all actions the agency is
    taking to recover improper payments, including--
    ``(1) a discussion of the methods used by the agency to
    recover overpayments;
    ``(2) the amounts recovered, outstanding, and determined to
    not be collectable, including the percent such amounts represent
    of the total overpayments of the agency;
    ``(3) if a determination has been made that certain
    overpayments are not collectable, a justification of that
    determination;
    ``(4) an aging schedule of the amounts outstanding;
    ``(5) a summary of how recovered amounts have been disposed
    of;
    ``(6) a discussion of any conditions giving rise to improper
    payments and how those conditions are being resolved; and

    [[Page 2227]]

    ``(7) if the agency has determined under section 2(h) of the
    Improper Payments Elimination and Recovery Act of 2010 (31
    U.S.C. 3321 note) that performing recovery audits for any
    applicable program or activity is not cost-effective, a
    justification for that determination.

    ``(e) Governmentwide Reporting of Improper Payments and Actions To
    Recover Improper Payments.--
    ``(1) Report.--Each fiscal year the Director of the Office
    of Management and Budget shall submit a report with respect to
    the preceding fiscal year on actions agencies have taken to
    report information regarding improper payments and actions to
    recover improper overpayments to--
    ``(A) the Committee on Homeland Security and
    Governmental Affairs of the Senate; and
    ``(B) the Committee on Oversight and Government
    Reform of the House of Representatives.
    ``(2) Contents.--Each report under this subsection shall
    include--
    ``(A) a summary of the reports of each agency on
    improper payments and recovery actions submitted under
    this section;
    ``(B) an identification of the compliance status of
    each agency to which this Act applies;
    ``(C) governmentwide improper payment reduction
    targets; and
    ``(D) a discussion of progress made towards meeting
    governmentwide improper payment reduction targets.''.

    (e) Definitions.--Section 2 of the Improper Payments Information Act
    of 2002 (31 U.S.C. 3321 note) is amended by striking subsections (f) (as
    redesignated by this section) and inserting the following:
    ``(f) Definitions.--In this section:
    ``(1) Agency.--The term `agency' means an executive agency,
    as that term is defined in section 102 of title 31, United
    States Code.
    ``(2) Improper payment.--The term `improper payment'--
    ``(A) means any payment that should not have been
    made or that was made in an incorrect amount (including
    overpayments and underpayments) under statutory,
    contractual, administrative, or other legally applicable
    requirements; and
    ``(B) includes any payment to an ineligible
    recipient, any payment for an ineligible good or
    service, any duplicate payment, any payment for a good
    or service not received (except for such payments where
    authorized by law), and any payment that does not
    account for credit for applicable discounts.
    ``(3) Payment.--The term `payment' means any transfer or
    commitment for future transfer of Federal funds such as cash,
    securities, loans, loan guarantees, and insurance subsidies to
    any non-Federal person or entity, that is made by a Federal
    agency, a Federal contractor, a Federal grantee, or a
    governmental or other organization administering a Federal
    program or activity.
    ``(4) Payment for an ineligible good or service.--The term
    `payment for an ineligible good or service' shall include a
    payment for any good or service that is rejected under any

    [[Page 2228]]

    provision of any contract, grant, lease, cooperative agreement,
    or any other funding mechanism.''.

    (f) Guidance by the Office of Management and Budget.--Section 2 of
    the Improper Payments Information Act of 2002 (31 U.S.C. 3321 note) is
    amended by striking subsection (g) (as redesignated by this section) and
    inserting the following:
    ``(g) Guidance by the Office of Management and Budget.--
    ``(1) In general.-- <> Not later than 6
    months after the date of enactment of the Improper Payments
    Elimination and Recovery Act of 2010, the Director of the Office
    of Management and Budget shall prescribe guidance for agencies
    to implement the requirements of this section. The guidance
    shall not include any exemptions to such requirements not
    specifically authorized by this section.
    ``(2) Contents.--The guidance under paragraph (1) shall
    prescribe--
    ``(A) the form of the reports on actions to reduce
    improper payments, recovery actions, and governmentwide
    reporting; and
    ``(B) strategies for addressing risks and
    establishing appropriate prepayment and postpayment
    internal controls.''.

    (g) <> Determinations of Agency Readiness
    for Opinion on Internal Control.-- <> Not
    later than 1 year after the date of enactment of this Act, the Director
    of the Office of Management and Budget shall develop--
    (1) specific criteria as to when an agency should initially
    be required to obtain an opinion on internal control over
    improper payments; and
    (2) criteria for an agency that has demonstrated a
    stabilized, effective system of internal control over improper
    payments, whereby the agency would qualify for a multiyear cycle
    for obtaining an audit opinion on internal control over improper
    payments, rather than an annual cycle.

    (h) <> Recovery Audits.--
    (1) Definition.--In this subsection, the term ``agency'' has
    the meaning given under section 2(f) of the Improper Payments
    Information Act of 2002 (31 U.S.C. 3321 note) as redesignated by
    this Act.
    (2) In general.--
    (A) Conduct of audits.--Except as provided under
    paragraph (4) and if not prohibited under any other
    provision of law, the head of each agency shall conduct
    recovery audits with respect to each program and
    activity of the agency that expends $1,000,000 or more
    annually if conducting such audits would be cost-
    effective.
    (B) Procedures.--In conducting recovery audits under
    this subsection, the head of an agency--
    (i) shall give priority to the most recent
    payments and to payments made in any program or
    programs identified as susceptible to significant
    improper payments under section 2(a) of the
    Improper Payments Information Act of 2002 (31
    U.S.C. 3321 note);
    (ii) shall implement this subsection in a
    manner designed to ensure the greatest financial
    benefit to the Government; and

    [[Page 2229]]

    (iii) may conduct recovery audits directly, by
    using other departments and agencies of the United
    States, or by procuring performance of recovery
    audits by private sector sources by contract
    (subject to the availability of appropriations),
    or by any combination thereof.
    (C) Recovery audit contracts.--With respect to
    recovery audits procured by an agency by contract--
    (i) subject to subparagraph (B)(iii), and
    except to the extent such actions are outside the
    agency's authority, as defined by section 605(a)
    of the Contract Disputes Act of 1978 (41 U.S.C.
    605(a)), the head of the agency may authorize the
    contractor to notify entities (including persons)
    of potential overpayments made to such entities,
    respond to questions concerning potential
    overpayments, and take other administrative
    actions with respect to overpayment claims made or
    to be made by the agency; and
    (ii) such contractor shall have no authority
    to make final determinations relating to whether
    any overpayment occurred and whether to
    compromise, settle, or terminate overpayment
    claims.
    (D) Contract terms and conditions.--
    (i) In general.--The agency shall include in
    each contract for procurement of performance of a
    recovery audit a requirement that the contractor
    shall--
    (I) <> provide to
    the agency periodic reports on
    conditions giving rise to overpayments
    identified by the contractor and any
    recommendations on how to mitigate such
    conditions;
    (II) <> notify
    the agency of any overpayments
    identified by the contractor pertaining
    to the agency or to any other agency or
    agencies that are beyond the scope of
    the contract; and
    (III) report to the agency credible
    evidence of fraud or vulnerabilities to
    fraud, and conduct appropriate training
    of personnel of the contractor on
    identification of fraud.
    (ii) Reports on actions taken.--Not later than
    November 1 of each year, each agency shall submit
    a report on actions taken by the agency during the
    preceding fiscal year to address the
    recommendations described under clause (i)(I) to--
    (I) the Office of Management and
    Budget; and
    (II) Congress.
    (E) Agency action following notification.--An agency
    shall take prompt and appropriate action in response to
    a report or notification by a contractor under
    subparagraph (D)(i)(I) or (II), to collect overpayments
    and shall forward to other agencies any information that
    applies to such agencies.
    (3) Disposition of amounts recovered.--
    (A) In general.--Amounts collected by agencies each
    fiscal year through recovery audits conducted under this
    subsection shall be treated in accordance with this
    paragraph. <> The agency head
    shall determine the distribution of collected amounts,
    less amounts needed to fulfill the

    [[Page 2230]]

    purposes of section 3562(a) of title 31, United States
    Code, in accordance with subparagraphs (B), (C), and
    (D).
    (B) Use for financial management improvement
    program.--Not more than 25 percent of the amounts
    collected by an agency through recovery audits--
    (i) shall be available to the head of the
    agency to carry out the financial management
    improvement program of the agency under paragraph
    (4);
    (ii) may be credited, if applicable, for that
    purpose by the head of an agency to any agency
    appropriations and funds that are available for
    obligation at the time of collection; and
    (iii) shall be used to supplement and not
    supplant any other amounts available for that
    purpose and shall remain available until expended.
    (C) Use for original purpose.--Not more than 25
    percent of the amounts collected by an agency--
    (i) shall be credited to the appropriation or
    fund, if any, available for obligation at the time
    of collection for the same general purposes as the
    appropriation or fund from which the overpayment
    was made;
    (ii) shall remain available for the same
    period and purposes as the appropriation or fund
    to which credited; and
    (iii) if the appropriation from which the
    overpayment was made has expired, shall be newly
    available for the same time period as the funds
    were originally available for obligation, except
    that any amounts that are recovered more than five
    fiscal years from the last fiscal year in which
    the funds were available for obligation shall be
    deposited in the Treasury as miscellaneous
    receipts, except that in the case of recoveries of
    overpayments that are made from trust or special
    fund accounts, such amounts shall revert to those
    accounts.
    (D) Use for inspector general activities.--Not more
    than 5 percent of the amounts collected by an agency
    shall be available to the Inspector General of that
    agency--
    (i) for--
    (I) the Inspector General to carry
    out this Act; or
    (II) any other activities of the
    Inspector General relating to
    investigating improper payments or
    auditing internal controls associated
    with payments; and
    (ii) shall remain available for the same
    period and purposes as the appropriation or fund
    to which credited.
    (E) Remainder.--Amounts collected that are not
    applied in accordance with subparagraph (A), (B), (C),
    or (D) shall be deposited in the Treasury as
    miscellaneous receipts, except that in the case of
    recoveries of overpayments that are made from trust or
    special fund accounts, such amounts shall revert to
    those accounts.
    (F) Discretionary amounts.--
    <> This paragraph shall apply only
    to recoveries of overpayments that are made from
    discretionary appropriations (as that term is defined

    [[Page 2231]]

    by paragraph 7 of section 250 of the Balanced Budget and
    Emergency Deficit Control Act of 1985) and shall not
    apply to recoveries of overpayments that are made from
    discretionary amounts that were appropriated prior to
    enactment of this Act.
    (G) Application.--This paragraph shall not apply to
    recoveries of overpayments if the appropriation from
    which the overpayment was made has not expired.
    (4) Financial management improvement program.--
    (A) Requirement.-- <> The head
    of each agency shall conduct a financial management
    improvement program, consistent with rules prescribed by
    the Director of the Office of Management and Budget.
    (B) Program features.--In conducting the program,
    the head of the agency--
    (i) shall, as the first priority of the
    program, address problems that contribute directly
    to agency improper payments; and
    (ii) may seek to reduce errors and waste in
    other agency programs and operations.
    (5) Privacy protections.--Any nongovernmental entity that,
    in the course of recovery auditing or recovery activity under
    this subsection, obtains information that identifies an
    individual or with respect to which there is a reasonable basis
    to believe that the information can be used to identify an
    individual, may not disclose the information for any purpose
    other than such recovery auditing or recovery activity and
    governmental oversight of such activity, unless disclosure for
    that other purpose is authorized by the individual to the
    executive agency that contracted for the performance of the
    recovery auditing or recovery activity.
    (6) Other recovery audit requirements.--
    (A) In general.-- <> (i) Except as
    provided in clause (ii), subchapter VI of chapter 35 of
    title 31, <> United States Code, is repealed.
    (ii) Section 3562(a) of title 31, United States
    Code, shall continue in effect, except that references
    in such section 3562(a) to programs carried out under
    section 3561 of such title, shall be interpreted to mean
    programs carried out under section 2(h) of this Act.
    (B) Technical and conforming amendments.--
    (i) Table of sections.--The table of sections
    for chapter 35 of title 31, United States Code, is
    amended by striking the matter relating to
    subchapter VI.
    (ii) Definition.--Section 3501 of title 31,
    United States Code, is amended by striking ``and
    subchapter VI of this title''.
    (iii) Homeland security grants.--Section
    2022(a)(6) of the Homeland Security Act of 2002 (6
    U.S.C. 612(a)(6)) is amended by striking ``(as
    that term is defined by the Director of the Office
    of Management and Budget under section 3561 of
    title 31, United States Code)'' and inserting
    ``under section 2(h) of the Improper Payments
    Elimination and Recovery Act of 2010 (31 U.S.C.
    3321 note)''.
    (7) Rule of construction.--Except as provided under
    paragraph (5), nothing in this section shall be construed as

    [[Page 2232]]

    terminating or in any way limiting authorities that are
    otherwise available to agencies under existing provisions of law
    to recover improper payments and use recovered amounts.

    (i) Report on Recovery Auditing.-- <> Not later than 2
    years after the date of the enactment of this Act, the Chief Financial
    Officers Council established under section 302 of the Chief Financial
    Officers Act of 1990 (31 U.S.C. 901 note), in consultation with the
    Council of Inspectors General on Integrity and Efficiency established
    under section 7 of the Inspector General Reform Act of 2009 (Public Law
    110-409) and recovery audit experts, shall conduct a study of--
    (1) the implementation of subsection (h);
    (2) the costs and benefits of agency recovery audit
    activities, including--
    (A) those activities under subsection (h); and
    (B) the effectiveness of using the services of--
    (i) private contractors;
    (ii) agency employees;
    (iii) cross-servicing from other agencies; or
    (iv) any combination of the provision of
    services described under clauses (i) through
    (iii); and
    (3) submit a report on the results of the study to--
    (A) the Committee on Homeland Security and
    Governmental Affairs of the Senate;
    (B) the Committee on Oversight and Government Reform
    of the House of Representatives; and
    (C) the Comptroller General.
    SEC. 3. <> COMPLIANCE.

    (a) Definitions.--In this section:
    (1) Agency.--The term ``agency'' has the meaning given under
    section 2(f) of the Improper Payments Information Act of 2002
    (31 U.S.C. 3321 note) as redesignated by this Act.
    (2) Annual financial statement.--The term ``annual financial
    statement'' means the annual financial statement required under
    section 3515 of title 31, United States Code, or similar
    provision of law.
    (3) Compliance.--The term ``compliance'' means that the
    agency--
    (A) has published an annual financial statement for
    the most recent fiscal year and posted that report and
    any accompanying materials required under guidance of
    the Office of Management and Budget on the agency
    website;
    (B) if required, has conducted a program specific
    risk assessment for each program or activity that
    conforms with section 2(a) the Improper Payments
    Information Act of 2002 (31 U.S.C. 3321 note); and
    (C) if required, publishes improper payments
    estimates for all programs and activities identified
    under section 2(b) of the Improper Payments Information
    Act of 2002 (31 U.S.C. 3321 note) in the accompanying
    materials to the annual financial statement;
    (D) publishes programmatic corrective action plans
    prepared under section 2(c) of the Improper Payments
    Information Act of 2002 (31 U.S.C. 3321 note) that the

    [[Page 2233]]

    agency may have in the accompanying materials to the
    annual financial statement;
    (E) publishes improper payments reduction targets
    established under section 2(c) of the Improper Payments
    Information Act of 2002 (31 U.S.C. 3321 note) that the
    agency may have in the accompanying materials to the
    annual financial statement for each program assessed to
    be at risk, and is meeting such targets; and
    (F) has reported an improper payment rate of less
    than 10 percent for each program and activity for which
    an estimate was published under section 2(b) of the
    Improper Payments Information Act of 2002 (31 U.S.C.
    3321 note).

    (b) Annual Compliance Report by Inspectors General of Agencies.--
    <> Each fiscal year, the Inspector General of each
    agency shall determine whether the agency is in compliance and submit a
    report on that determination to--
    (1) the head of the agency;
    (2) the Committee on Homeland Security and Governmental
    Affairs of the Senate;
    (3) the Committee on Oversight and Governmental Reform of
    the House of Representatives; and
    (4) the Comptroller General.

    (c) Remediation.--
    (1) Noncompliance.--
    (A) In general.-- <> If an agency is
    determined by the Inspector General of that agency not
    to be in compliance under subsection (b) in a fiscal
    year, the head of the agency shall submit a plan to
    Congress describing the actions that the agency will
    take to come into compliance.
    (B) Plan.--The plan described under subparagraph (A)
    shall include--
    (i) measurable milestones to be accomplished
    in order to achieve compliance for each program or
    activity;
    (ii) the designation of a senior agency
    official who shall be accountable for the progress
    of the agency in coming into compliance for each
    program or activity; and
    (iii) the establishment of an accountability
    mechanism, such as a performance agreement, with
    appropriate incentives and consequences tied to
    the success of the official designated under
    clause (ii) in leading the efforts of the agency
    to come into compliance for each program and
    activity.
    (2) Noncompliance for 2 fiscal years.--
    (A) In general.-- <> If an
    agency is determined by the Inspector General of that
    agency not to be in compliance under subsection (b) for
    2 consecutive fiscal years for the same program or
    activity, and the Director of the Office of Management
    and Budget determines that additional funding would help
    the agency come into compliance, the head of the agency
    shall obligate additional funding, in an amount
    determined by the Director, to intensified compliance
    efforts.
    (B) Funding.-- <> In
    providing additional funding described under
    subparagraph (A), the head of an agency

    [[Page 2234]]

    shall use any reprogramming or transfer authority
    available to the agency. If after exercising that
    reprogramming or transfer authority additional funding
    is necessary to obligate the full level of funding
    determined by the Director of the Office of Management
    and Budget under subparagraph (A), the agency shall
    submit a request to Congress for additional
    reprogramming or transfer authority.
    (3) Reauthorization and statutory proposals.--
    <> If an agency is determined by the Inspector
    General of that agency not to be in compliance under subsection
    (b) for more than 3 consecutive fiscal years for the same
    program or activity, the head of the agency shall, not later
    than 30 days after such determination, submit to Congress--
    (A) reauthorization proposals for each program or
    activity that has not been in compliance for 3 or more
    consecutive fiscal years; or
    (B) proposed statutory changes necessary to bring
    the program or activity into compliance.

    (d) Compliance Enforcement Pilot Programs.--
    (1) In general.--The Director of the Office of Management
    and Budget may establish 1 or more pilot programs which shall
    test potential accountability mechanisms with appropriate
    incentives and consequences tied to success in ensuring
    compliance with this Act and eliminating improper payments.
    (2) Report.--Not later than 5 years after the date of
    enactment of this Act, the Director of the Office of Management
    and Budget shall submit a report to Congress on the findings
    associated with any pilot programs conducted under paragraph
    (1). The report shall include any legislative or other
    recommendations that the Director determines necessary.

    (e) Report on Chief Financial Officers Act of 1990.--Not later than
    1 year after the date of the enactment of this Act, the Chief Financial
    Officers Council established under section 302 of the Chief Financial
    Officers Act of 1990 (31 U.S.C. 901 note) and the Council of Inspectors
    General on Integrity and Efficiency established under section 7 of the
    Inspector General Reform Act of 2009 (Public Law 110-409), in
    consultation with a broad cross-section of experts and stakeholders in
    Government accounting and financial management shall--
    (1) jointly examine the lessons learned during the first 20
    years of implementing the Chief Financial Officers Act of 1990
    (31 U.S.C. 901) and identify reforms or improvements, if any, to
    the legislative and regulatory compliance framework for Federal
    financial management that will optimize Federal agency efforts
    to--
    (A) <> publish relevant, timely,
    and reliable reports on Government finances; and
    (B) implement internal controls that mitigate the
    risk for fraud, waste, and error in Government programs;
    and
    (2) jointly submit a report on the results of the
    examination to--
    (A) the Committee on Homeland Security and
    Governmental Affairs of the Senate;
    (B) the Committee on Oversight and Government Reform
    of the House of Representatives; and

    [[Page 2235]]

    (C) the Comptroller General.

    Approved July 22, 2010.

    LEGISLATIVE HISTORY--S. 1508 (H.R. 3393):
    ---------------------------------------------------------------------------

    CONGRESSIONAL RECORD, Vol. 156 (2010):
    June 23, considered and passed Senate.
    July 14, considered and passed House.
    DAILY COMPILATION OF PRESIDENTIAL DOCUMENTS (2010):
    July 22, Presidential remarks.