S. 4716 

One Hundred Eighteenth Congress 

of the 

United States of America 

AT THE SECOND SESSION 

Begun and held at the City of Washington on Wednesday, 

the third day of January, two thousand and twenty four 

An Act 

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

audit requirements. 

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 ‘‘Financial Management Risk 

Reduction Act’’. 

SEC. 2. SINGLE AUDIT IMPROVEMENTS. 

Section 7504 of title 31, United States Code, is amended— 

(1) in subsection (a)— 

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

a semicolon; 

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

end and inserting a semicolon; and 

(C) by adding at the end the following: 

‘‘(3) participate in and furnish information for the review 

under subsection (e); and 

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

Federal awards or such other amount specified by the Director 

under section 7502(a)(3) during the recipient’s fiscal year but 

did not undergo an audit in accordance with this chapter.’’; 

(2) in subsection (c)— 

(A) in paragraph (1), by adding ‘‘and’’ at the end; 

(B) by striking paragraph (2); and 

(C) by redesignating paragraph (3) as paragraph (2); 

and 

(3) by adding at the end the following: 

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

this subsection, and every 2 years thereafter, the Director shall 

submit to the Committee on Homeland Security and Governmental 

Affairs of the Senate and the Committee on Oversight and Accountability of the House of Representatives a report listing the recipients 

identified under subsection (a)(4). 

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

to conduct a Government-wide analysis of single audit quality, 

which may include a consideration of the results of reviews of 

single audit quality by— 

‘‘(A) Federal agencies; 

‘‘(B) inspectors general of Federal agencies; 

‘‘(C) State auditors; and 

‘‘(D) external peer reviews conducted in accordance with 

generally accepted government auditing standards. 
S. 4716—2 

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

this subsection, and every 6 years thereafter, the Federal agencies 

designated under paragraph (1) shall complete a Government-wide 

analysis of single audit quality. 

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

Security and Governmental Affairs of the Senate and the Committee 

on Oversight and Accountability of the House of Representatives 

and make publicly available a summary of the results of each 

review under paragraph (2). 

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

this subsection— 

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

with the Director, the Council on Federal Financial Assistance 

(or any successor thereto), and key management single audit 

liaisons of Federal agencies designated as described in section 

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

thereto), shall develop analytic tools to use audit data in the 

Federal clearinghouse to identify cross-Governmental risks to 

Federal award funds; and 

‘‘(2) the Director, in coordination with the Administrator 

of General Services, the Council on Federal Financial Assistance (or any successor thereto), and key management single 

audit liaisons of Federal agencies designated as described in 

section 200.513 of title 2, Code of Federal Regulations (or 

any successor thereto), shall develop a strategy to use audit 

data in the Federal clearinghouse to identify cross-Governmental risks to Federal award funds. 

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

this subsection, the Comptroller General of the United States shall 

complete an evaluation of— 

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

developed under subsection (f); 

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

and the capacity of auditors and audited entities to fulfill 

the requirements under this chapter; and 

‘‘(3) the responsiveness of Federal agencies to repeat single 

audit findings and corrective action plans.’’. 
S. 4716—3 

SEC. 3. NO ADDITIONAL FUNDS. 

No additional funds are authorized to be appropriated to carry 

out this Act or the amendments made by this Act. 

Speaker of the House of Representatives. 

Vice President of the United States and

President of the Senate.