118TH CONGRESS 

2D SESSION S. 4716 

AN ACT 

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, 
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†S 4716 ES

1 SECTION 1. SHORT TITLE. 

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

3 Risk Reduction Act’’. 

4 SEC. 2. SINGLE AUDIT IMPROVEMENTS. 

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

6 amended— 

7 (1) in subsection (a)— 

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

9 and inserting a semicolon; 

10 (B) in paragraph (2), by striking the pe11 riod at the end and inserting a semicolon; and 

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

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

14 the review under subsection (e); and 

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

16 or more in Federal awards or such other amount 

17 specified by the Director under section 7502(a)(3) 

18 during the recipient’s fiscal year but did not undergo 

19 an audit in accordance with this chapter.’’; 

20 (2) in subsection (c)— 

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

22 the end; 

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

24 (C) by redesignating paragraph (3) as 

25 paragraph (2); and 

26 (3) by adding at the end the following: 
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1 ‘‘(d) Not later than 2 years after the date of enact2 ment of this subsection, and every 2 years thereafter, the 

3 Director shall submit to the Committee on Homeland Se4 curity and Governmental Affairs of the Senate and the 

5 Committee on Oversight and Accountability of the House 

6 of Representatives a report listing the recipients identified 

7 under subsection (a)(4). 

8 ‘‘(e)(1) The Director shall designate 1 or more Fed9 eral agencies to conduct a Government-wide analysis of 

10 single audit quality, which may include a consideration of 

11 the results of reviews of single audit quality by— 

12 ‘‘(A) Federal agencies; 

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

14 ‘‘(C) State auditors; and 

15 ‘‘(D) external peer reviews conducted in accord16 ance with generally accepted government auditing 

17 standards. 

18 ‘‘(2) Not later than 3 years after the date of enact19 ment of this subsection, and every 6 years thereafter, the 

20 Federal agencies designated under paragraph (1) shall 

21 complete a Government-wide analysis of single audit qual22 ity. 

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

24 Homeland Security and Governmental Affairs of the Sen25 ate and the Committee on Oversight and Accountability 
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1 of the House of Representatives and make publicly avail2 able a summary of the results of each review under para3 graph (2). 

4 ‘‘(f) Not later than 2 years after the date of enact5 ment of this subsection— 

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

7 coordination with the Director, the Council on Fed8 eral Financial Assistance (or any successor thereto), 

9 and key management single audit liaisons of Federal 

10 agencies designated as described in section 200.513 

11 of title 2, Code of Federal Regulations (or any suc12 cessor thereto), shall develop analytic tools to use 

13 audit data in the Federal clearinghouse to identify 

14 cross-Governmental risks to Federal award funds; 

15 and 

16 ‘‘(2) the Director, in coordination with the Ad17 ministrator of General Services, the Council on Fed18 eral Financial Assistance (or any successor thereto), 

19 and key management single audit liaisons of Federal 

20 agencies designated as described in section 200.513 

21 of title 2, Code of Federal Regulations (or any suc22 cessor thereto), shall develop a strategy to use audit 

23 data in the Federal clearinghouse to identify cross24 Governmental risks to Federal award funds. 
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1 ‘‘(g) Not later than 4 years after the date of enact2 ment of this subsection, the Comptroller General of the 

3 United States shall complete an evaluation of— 

4 ‘‘(1) the effectiveness of the strategy and ana5 lytic tools developed under subsection (f); 

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

7 entities and the capacity of auditors and audited en8 tities to fulfill the requirements under this chapter; 

9 and 

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

11 repeat single audit findings and corrective action 

12 plans.’’. 

13 SEC. 3. NO ADDITIONAL FUNDS. 

14 No additional funds are authorized to be appro15 priated to carry out this Act or the amendments made 

16 by this Act. 

Passed the Senate November 14, 2024. 

Attest: 

Secretary. 
118TH CONGRESS 

2D SESSION S. 4716 

AN ACT 

To amend section 7504 of title 31, United States 

Code, to improve the single audit requirements.