PUBLIC LAW 107–289—NOV. 7, 2002 116 STAT. 2049

Public Law 107–289

107th Congress

An Act

To amend title 31, United States Code, to expand the types of Federal agencies

that are required to prepare audited financial statements.

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 ‘‘Accountability of Tax Dollars

Act of 2002’’.

SEC. 2. AMENDMENTS RELATING TO AUDITING REQUIREMENT FOR

FEDERAL AGENCY FINANCIAL STATEMENTS.

(a) IN GENERAL.—Section 3515 of title 31, United States Code,

is amended—

(1) in subsection (a)—

(A) by striking ‘‘Not later’’ and inserting ‘‘(1) Except

as provided in subsection (e), not later’’;

(B) by striking ‘‘each executive agency identified in

section 901(b) of this title’’ and inserting ‘‘each covered

executive agency’’; and

(C) by striking ‘‘1997’’ and inserting ‘‘2003’’;

(2) in subsection (b) by striking ‘‘an executive agency’’ and

inserting ‘‘a covered executive agency’’;

(3) in subsections (c) and (d) by striking ‘‘executive agencies’’ each place it appears and inserting ‘‘covered executive

agencies’’; and

(4) by adding at the end the following:

‘‘(e)(1) The Director of the Office of Management and Budget

may exempt a covered executive agency, except an agency described

in section 901(b), from the requirements of this section with respect

to a fiscal year if—

‘‘(A) the total amount of budget authority available to the

agency for the fiscal year does not exceed $25,000,000; and

‘‘(B) the Director determines that requiring an annual

audited financial statement for the agency with respect to the

fiscal year is not warranted due to the absence of risks associated with the agency’s operations, the agency’s demonstrated

performance, or other factors that the Director considers relevant.

‘‘(2) The Director shall annually notify the Committee on

Government Reform of the House of Representatives and the Committee on Governmental Affairs of the Senate of each agency the

Director has exempted under this subsection and the reasons for

each exemption.

‘‘(f) The term ‘covered executive agency’—

Notification.

31 USC 3501

note.

Accountability of

Tax Dollars Act

of 2002.

Nov. 7, 2002

[H.R. 4685]

116 STAT. 2050 PUBLIC LAW 107–289—NOV. 7, 2002

LEGISLATIVE HISTORY—H.R. 4685 (S. 2644):

SENATE REPORTS: No. 107–331 accompanying S. 2644 (Comm. on Governmental

Affairs).

CONGRESSIONAL RECORD, Vol. 148 (2002):

Oct. 7, considered and passed House.

Oct. 17, considered and passed Senate.

WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 38 (2002):

Nov. 7, Presidential statements.

Æ

‘‘(1) means an executive agency that is not required by

another provision of Federal law to prepare and submit to

the Congress and the Director of the Office of Management

and Budget an audited financial statement for each fiscal year,

covering all accounts and associated activities of each office,

bureau, and activity of the agency; and

‘‘(2) does not include a corporation, agency, or instrumentality subject to chapter 91 of this title.’’.

(b) WAIVER AUTHORITY.— (1) IN GENERAL.—The Director of the Office of Management

and Budget may waive the application of all or part of section

3515(a) of title 31, United States Code, as amended by this

section, for financial statements required for the first 2 fiscal

years beginning after the date of the enactment of this Act

for an agency described in paragraph (2) of this subsection.

(2) AGENCIES DESCRIBED.—An agency referred to in paragraph (1) is any covered executive agency (as that term is

defined by section 3515(f) of title 31, United States Code, as

amended by subsection (a) of this section) that is not an executive agency identified in section 901(b) of title 31, United States

Code.

Approved November 7, 2002.

31 USC 3515

note.