[118th Congress Public Law 207]
[From the U.S. Government Publishing Office]



[[Page 138 STAT. 2701]]

Public Law 118-207
118th Congress

                                 An Act


 
 To amend section 7504 of title 31, United States Code, to improve the 
    single audit requirements. <<NOTE: Dec. 23, 2024 -  [S. 4716]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: Financial 
Management Risk Reduction Act.>> 
SECTION <<NOTE: 31 USC 7501 note.>> 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) <<NOTE: Deadlines.>>  by adding at the end the 
        following:

    ``(d) <<NOTE: Time period. Reports.>>  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) <<NOTE: Designation. Analyses.>> 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.

[[Page 138 STAT. 2702]]

    ``(2) <<NOTE: Time period.>> 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) <<NOTE: Public information. Summary.>> 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) <<NOTE: Strategy.>> 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) <<NOTE: Evaluation.>>  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.''.

[[Page 138 STAT. 2703]]

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.

    Approved December 23, 2024.

LEGISLATIVE HISTORY--S. 4716:
---------------------------------------------------------------------------

SENATE REPORTS: No. 118-226 (Comm. on Homeland Security and Governmental 
Affairs).
CONGRESSIONAL RECORD, Vol. 170 (2024):
            Nov. 14, considered and passed Senate.
            Dec. 16, considered and passed House.

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