[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4180 Reported in House (RH)]
<DOC>
Union Calendar No. 320
114th CONGRESS
2d Session
H. R. 4180
[Report No. 114-419]
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 HOUSE OF REPRESENTATIVES
December 3, 2015
Mr. Meadows (for himself and Mr. Connolly) introduced the following
bill; which was referred to the Committee on Oversight and Government
Reform
February 9, 2016
Additional sponsors: Mr. Mulvaney and Ms. Duckworth
February 9, 2016
Committed to the Committee of the Whole House on the State of the Union
and ordered to be printed
_______________________________________________________________________
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;
(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.
Union Calendar No. 320
114th CONGRESS
2d Session
H. R. 4180
[Report No. 114-419]
_______________________________________________________________________
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.
_______________________________________________________________________
February 9, 2016
Committed to the Committee of the Whole House on the State of the Union
and ordered to be printed