II 

118TH CONGRESS 

2D SESSION S. 4716 

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 

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’’. 

6 SEC. 2. SINGLE AUDIT IMPROVEMENTS. 

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

8 amended— 

9 (1) in subsection (a)— 


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

2 and inserting a semicolon; 

3 (B) in paragraph (2), by striking the pe4 riod at the end and inserting a semicolon; and 

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

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

7 the review under subsection (d); and 

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

9 clearinghouse, recipients that expend $300,000 or 

10 more in Federal awards or such other amount speci11 fied by the Director under section 7502(a)(3) during 

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

13 audit in accordance with this chapter.’’; 

14 (2) in subsection (c)— 

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

16 the end; 

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

18 (C) by redesignating paragraph (3) as 

19 paragraph (2); and 

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

21 ‘‘(d) Not later than 2 years after the date of enact22 ment of this subsection, and every 2 years thereafter, the 

23 Director submit to the Committee on Homeland Security 

24 and Governmental Affairs of the Senate and the Com25 mittee on Oversight and Accountability of the House of 


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1 Representatives a report listing the recipients identified 

2 under subsection (a) (4). 

3 ‘‘(e)(1) The Director shall designate 1 or more Fed4 eral agencies to conduct a Government-wide analysis of 

5 single audit quality, which may include a consideration of 

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

7 ‘‘(A) Federal agencies; 

8 ‘‘(B) State auditors; and 

9 ‘‘(C) independent peer review programs. 

10 ‘‘(2) Not later than 3 years after the date of enact11 ment of this subsection, and every 6 years thereafter, the 

12 Federal agencies designated under paragraph (1) shall 

13 complete a Government-wide analysis of single audit qual14 ity, which shall include the views of non-Federal entities 

15 regarding single audit quality. 

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

17 Homeland Security and Governmental Affairs of the Sen18 ate and the Committee on Oversight and Accountability 

19 of the House of Representatives and make publicly avail20 able the results of each review under paragraph (2). 

21 ‘‘(f) Not later than 2 years after the date of enact22 ment of this subsection— 

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

24 coordination with the Director, the Council on Fed25 eral Financial Assistance (or any successor thereto), 


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1 and key management single audit liaisons of Federal 

2 agencies designated as described in section 200.513 

3 of title 2, Code of Federal Regulations (or any suc4 cessor thereto), shall develop analytic tools to use 

5 audit data in the Federal clearinghouse to identify 

6 cross-Governmental risks to Federal award funds; 

7 and 

8 ‘‘(2) the Director, in coordination with the Ad9 ministrator of General Services, the Council on Fed10 eral Financial Assistance (or any successor thereto), 

11 and key management single audit liaisons of Federal 

12 agencies designated as described in section 200.513 

13 of title 2, Code of Federal Regulations (or any suc14 cessor thereto), shall develop a strategy to use audit 

15 data in the Federal clearinghouse to identify cross16 Governmental risks to Federal award funds. 

17 ‘‘(g) Not later than 4 years after the date of enact18 ment of this subsection, the Comptroller General of the 

19 United States shall complete an evaluation of— 

20 ‘‘(1) the effectiveness of the strategy and ana21 lytic tools developed under subsection (f); 

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

23 entities and the capacity of auditors and audited en24 tities to fulfill the requirements under this chapter; 

25 and 


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

2 repeat single audit findings and corrective action 

3 plans.’’. 

Æ 


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