II 

Calendar No. 519 

118TH CONGRESS 

2D SESSION S. 4716 

[Report No. 118–226] 

To amend section 7504 of title 31, United States Code, to improve the 

single audit requirements. 

IN THE SENATE OF THE UNITED STATES 

JULY 11 (legislative day, JULY 10), 2024 

Mr. PETERS (for himself and Mr. JOHNSON) introduced the following bill; 

which was read twice and referred to the Committee on Homeland Security and Governmental Affairs 

SEPTEMBER 19, 2024 

Reported by Mr. PETERS, with an amendment 

[Strike out all after the enacting clause and insert the part printed in italic] 

A BILL 

To amend section 7504 of title 31, United States Code, 

to improve the single audit requirements. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Financial Management 

5 Risk Reduction Act’’. 


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1 SEC. 2. SINGLE AUDIT IMPROVEMENTS. 

2 Section 7504 of title 31, United States Code, is 

3 amended— 

4 (1) in subsection (a)— 

5 (A) in paragraph (1), by striking ‘‘, and’’ 

6 and inserting a semicolon; 

7 (B) in paragraph (2), by striking the pe8 riod at the end and inserting a semicolon; and 

9 (C) by adding at the end the following: 

10 ‘‘(3) participate in and furnish information for 

11 the review under subsection (d); and 

12 ‘‘(4) identify, in coordination with the Federal 

13 clearinghouse, recipients that expend $300,000 or 

14 more in Federal awards or such other amount speci15 fied by the Director under section 7502(a)(3) during 

16 the recipient’s fiscal year but did not undergo an 

17 audit in accordance with this chapter.’’; 

18 (2) in subsection (c)— 

19 (A) in paragraph (1), by adding ‘‘and’’ at 

20 the end; 

21 (B) by striking paragraph (2); and 

22 (C) by redesignating paragraph (3) as 

23 paragraph (2); and 

24 (3) by adding at the end the following: 

25 ‘‘(d) Not later than 2 years after the date of enact26 ment of this subsection, and every 2 years thereafter, the 


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1 Director submit to the Committee on Homeland Security 

2 and Governmental Affairs of the Senate and the Com3 mittee on Oversight and Accountability of the House of 

4 Representatives a report listing the recipients identified 

5 under subsection (a) (4). 

6 ‘‘(e)(1) The Director shall designate 1 or more Fed7 eral agencies to conduct a Government-wide analysis of 

8 single audit quality, which may include a consideration of 

9 the results of ongoing reviews of single audit quality by— 

10 ‘‘(A) Federal agencies; 

11 ‘‘(B) State auditors; and 

12 ‘‘(C) independent peer review programs. 

13 ‘‘(2) Not later than 3 years after the date of enact14 ment of this subsection, and every 6 years thereafter, the 

15 Federal agencies designated under paragraph (1) shall 

16 complete a Government-wide analysis of single audit qual17 ity, which shall include the views of non-Federal entities 

18 regarding single audit quality. 

19 ‘‘(3) The Director shall submit to the Committee on 

20 Homeland Security and Governmental Affairs of the Sen21 ate and the Committee on Oversight and Accountability 

22 of the House of Representatives and make publicly avail23 able the results of each review under paragraph (2). 

24 ‘‘(f) Not later than 2 years after the date of enact25 ment of this subsection— 


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1 ‘‘(1) the Administrator of General Services, in 

2 coordination with the Director, the Council on Fed3 eral Financial Assistance (or any successor thereto), 

4 and key management single audit liaisons of Federal 

5 agencies designated as described in section 200.513 

6 of title 2, Code of Federal Regulations (or any suc7 cessor thereto), shall develop analytic tools to use 

8 audit data in the Federal clearinghouse to identify 

9 cross-Governmental risks to Federal award funds; 

10 and 

11 ‘‘(2) the Director, in coordination with the Ad12 ministrator of General Services, the Council on Fed13 eral Financial Assistance (or any successor thereto), 

14 and key management single audit liaisons of Federal 

15 agencies designated as described in section 200.513 

16 of title 2, Code of Federal Regulations (or any suc17 cessor thereto), shall develop a strategy to use audit 

18 data in the Federal clearinghouse to identify cross19 Governmental risks to Federal award funds. 

20 ‘‘(g) Not later than 4 years after the date of enact21 ment of this subsection, the Comptroller General of the 

22 United States shall complete an evaluation of— 

23 ‘‘(1) the effectiveness of the strategy and ana24 lytic tools developed under subsection (f); 


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1 ‘‘(2) reporting burdens for auditors and audited 

2 entities and the capacity of auditors and audited en3 tities to fulfill the requirements under this chapter; 

4 and 

5 ‘‘(3) the responsiveness of Federal agencies to 

6 repeat single audit findings and corrective action 

7 plans.’’. 

8 SECTION 1. SHORT TITLE. 

9 This Act may be cited as the ‘‘Financial Management 

10 Risk Reduction Act’’. 

11 SEC. 2. SINGLE AUDIT IMPROVEMENTS. 

12 Section 7504 of title 31, United States Code, is amend13 ed— 

14 (1) in subsection (a)— 

15 (A) in paragraph (1), by striking ‘‘, and’’ 

16 and inserting a semicolon; 

17 (B) in paragraph (2), by striking the period 

18 at the end and inserting a semicolon; and 

19 (C) by adding at the end the following: 

20 ‘‘(3) participate in and furnish information for 

21 the review under subsection (e); and 

22 ‘‘(4) identify recipients that expend $300,000 or 

23 more in Federal awards or such other amount speci24 fied by the Director under section 7502(a)(3) during 


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1 the recipient’s fiscal year but did not undergo an 

2 audit in accordance with this chapter.’’; 

3 (2) in subsection (c)— 

4 (A) in paragraph (1), by adding ‘‘and’’ at 

5 the end; 

6 (B) by striking paragraph (2); and 

7 (C) by redesignating paragraph (3) as 

8 paragraph (2); and 

9 (3) by adding at the end the following: 

10 ‘‘(d) Not later than 2 years after the date of enactment 

11 of this subsection, and every 2 years thereafter, the Director 

12 shall submit to the Committee on Homeland Security and 

13 Governmental Affairs of the Senate and the Committee on 

14 Oversight and Accountability of the House of Representa15 tives a report listing the recipients identified under sub16 section (a)(4). 

17 ‘‘(e)(1) The Director shall designate 1 or more Federal 

18 agencies to conduct a Government-wide analysis of single 

19 audit quality, which may include a consideration of the re20 sults of reviews of single audit quality by— 

21 ‘‘(A) Federal agencies; 

22 ‘‘(B) inspectors general of Federal agencies; 

23 ‘‘(C) State auditors; and 


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1 ‘‘(D) external peer reviews conducted in accord2 ance with generally accepted government auditing 

3 standards. 

4 ‘‘(2) Not later than 3 years after the date of enactment 

5 of this subsection, and every 6 years thereafter, the Federal 

6 agencies designated under paragraph (1) shall complete a 

7 Government-wide analysis of single audit quality. 

8 ‘‘(3) The Director shall submit to the Committee on 

9 Homeland Security and Governmental Affairs of the Senate 

10 and the Committee on Oversight and Accountability of the 

11 House of Representatives and make publicly available a 

12 summary of the results of each review under paragraph (2). 

13 ‘‘(f) Not later than 2 years after the date of enactment 

14 of this subsection— 

15 ‘‘(1) the Administrator of General Services, in 

16 coordination with the Director, the Council on Fed17 eral Financial Assistance (or any successor thereto), 

18 and key management single audit liaisons of Federal 

19 agencies designated as described in section 200.513 of 

20 title 2, Code of Federal Regulations (or any successor 

21 thereto), shall develop analytic tools to use audit data 

22 in the Federal clearinghouse to identify cross-Govern23 mental risks to Federal award funds; and 

24 ‘‘(2) the Director, in coordination with the Ad25 ministrator of General Services, the Council on FedVerDate Sep 11 2014 00:01 Sep 20, 2024 Jkt 049200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6203 E:\BILLS\S4716.RS S4716

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1 eral Financial Assistance (or any successor thereto), 

2 and key management single audit liaisons of Federal 

3 agencies designated as described in section 200.513 of 

4 title 2, Code of Federal Regulations (or any successor 

5 thereto), shall develop a strategy to use audit data in 

6 the Federal clearinghouse to identify cross-Govern7 mental risks to Federal award funds. 

8 ‘‘(g) Not later than 4 years after the date of enactment 

9 of this subsection, the Comptroller General of the United 

10 States shall complete an evaluation of— 

11 ‘‘(1) the effectiveness of the strategy and analytic 

12 tools developed under subsection (f); 

13 ‘‘(2) reporting burdens for auditors and audited 

14 entities and the capacity of auditors and audited en15 tities to fulfill the requirements under this chapter; 

16 and 

17 ‘‘(3) the responsiveness of Federal agencies to re18 peat single audit findings and corrective action 

19 plans.’’. 

20 SEC. 3. NO ADDITIONAL FUNDS. 

21 No additional funds are authorized to be appropriated 

22 to carry out this Act or the amendments made by this Act. 


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Calendar No. 519 

118TH CONGRESS 

2D SESSION S. 4716 

[Report No. 118–226] 

A BILL 

To amend section 7504 of title 31, United States 

Code, to improve the single audit requirements. 

SEPTEMBER 19, 2024 

Reported with an amendment 


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