II

Calendar No. 950

106TH CONGRESS

2D SESSION S. 3030

[Report No. 106–502]

To amend title 31, United States Code, to provide for executive agencies

to conduct annual recovery audits and recovery activities, and for other

purposes.

IN THE SENATE OF THE UNITED STATES

SEPTEMBER 12, 2000

Mr. THOMPSON (for himself and Mr. FITZGERALD) introduced the following

bill; which was read twice and referred to the Committee on Governmental Affairs

OCTOBER 12 (legislative day, SEPTEMBER 22), 2000

Reported by Mr. THOMPSON, without amendment

A BILL

To amend title 31, United States Code, to provide for executive agencies to conduct annual recovery audits and recovery activities, and for other purposes.

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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1 SECTION 1. RECOVERY AUDITS.

2 (a) RECOVERY AUDIT REQUIREMENT.—(1) Chapter

3 35 of title 31, United States Code, is amended by adding

4 at the end the following:

5 ‘‘SUBCHAPTER VI—RECOVERY AUDITS

6 ‘‘§ 3561. Definitions

7 ‘‘In this subchapter:

8 ‘‘(1) AMOUNTS COLLECTED.—The term

9 ‘amounts collected’ means monies received or cred10 ited, by any means, including offset, by the United

11 States Government.

12 ‘‘(2) CHIEF FINANCIAL OFFICER.—The term

13 ‘Chief Financial Officer’ means—

14 ‘‘(A) the official appointed or designated

15 under section 901 of this title; or

16 ‘‘(B) in the case of an executive agency

17 that is not required to have a Chief Financial

18 Officer under that section, an official of the

19 agency whose authority and functions are sub20 stantially equivalent to the authority and func21 tions of an agency Chief Financial Officer

22 under section 902 of this title.

23 ‘‘(3) DIRECTOR.—The term ‘Director’ means

24 the Director of the Office of Management and Budg25 et.
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1 ‘‘(4) DISCLOSE.—The term ‘disclose’, with re2 spect to individually identifiable information on any

3 person, means release, publish, transfer, provide ac4 cess to, or otherwise divulge the individually identifi5 able information to any other person.

6 ‘‘(5) FACIAL-DISCREPANCY PAYMENT ERROR.—

7 The term ‘facial-discrepancy payment error’—

8 ‘‘(A) means, except as provided in sub9 paragraph (B), any error in a payment made by

10 an executive agency for goods or services that

11 is apparent from a review of the face of an in12 voice or other payment document that is pre13 sented to the executive agency by the supplier

14 of the goods or services in the usual and cus15 tomary conduct of business or pursuant to a re16 quirement in law or a contract to substantiate

17 the claim for the payment, including any such

18 document that is presented electronically; and

19 ‘‘(B) does not include a payment error

20 identified, resulting, or supported from a docu21 ment that is—

22 ‘‘(i) a record of a proprietary nature

23 that is maintained solely by the supplier of

24 the goods or services;
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1 ‘‘(ii) not specifically required to be

2 presented to the executive agency by con3 tract, law, or regulation, or not necessary

4 for the substantiation of the claim for the

5 payment; or

6 ‘‘(iii) submitted to the executive agen7 cy for evaluative purposes before the award

8 of the contract under which the payment

9 was made.

10 ‘‘(6) INDIVIDUALLY IDENTIFIABLE INFORMA11 TION.—The term ‘individually identifiable informa12 tion’, with respect to a person, means any informa13 tion, whether oral or recorded in any form or me14 dium, that identifies the person or with respect to

15 which there is a reasonable basis to believe that the

16 information can be used to identify the person.

17 ‘‘(7) OVERSIGHT.—The term ‘oversight’, with

18 respect to a payment activity, recovery audit, or re19 covery activity, means activities by a Federal, State,

20 or local governmental entity to enforce laws relating

21 to, to investigate, or to regulate such audit or activ22 ity.

23 ‘‘(8) PAYMENT ACTIVITY.—The term ‘payment

24 activity’ means an executive agency activity to pay

25 nongovernmental sources for goods or services ac-
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1 quired from those sources by the agency to support

2 the performance of the agency’s mission.

3 ‘‘(9) RECOVERY AUDIT.—The term ‘recovery

4 audit’ means a financial management technique of

5 an executive agency that is used by the executive

6 agency to perform internal audits of its records to

7 identify facial-discrepancy payment errors that are

8 made by the executive agency in connection with a

9 payment activity, including facial-discrepancy pay10 ment errors that result from any of the following:

11 ‘‘(A) Duplicate payments.

12 ‘‘(B) Invoice errors.

13 ‘‘(C) Failure to take advantage of applica14 ble discounts, rebates, or other allowances.

15 ‘‘(D) Any other similar facial-discrepancy

16 payment errors resulting in inaccurate pay17 ments, including underpayments identified pur18 suant to guidance issued under section

19 3565(b)(3) of this title.

20 ‘‘(10) RECOVERY ACTIVITY.—The term ‘recov21 ery activity’ means an executive agency activity to

22 attempt to collect, under the authority of chapter 37

23 of this title or any other provision of law, a payment

24 error identified in a recovery audit.
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1 ‘‘(11) RECOVERY AUDIT CONTRACTOR.—The

2 term ‘recovery audit contractor’ means any private

3 sector person who is obligated under a contract en4 tered into with an executive agency to perform a re5 covery audit for the executive agency.

6 ‘‘§ 3562. Recovery audit requirement

7 ‘‘(a) IN GENERAL.—Except as exempted under sec8 tion 3566 of this title, the head of each executive agency—

9 ‘‘(1) shall conduct each fiscal year—

10 ‘‘(A) recovery audits of the payment activi11 ties of the agency for the preceding fiscal year

12 if the payment activities for the fiscal year total

13 at least $500,000,000 (adjusted by the Director

14 annually for inflation); and

15 ‘‘(B) the recovery activities determined

16 warranted with respect to those payment activi17 ties; and

18 ‘‘(2) may conduct in any fiscal year—

19 ‘‘(A) recovery audits of the payment activi20 ties of the agency for the preceding fiscal year

21 if the payment activities for the fiscal year total

22 less than $500,000,000 (adjusted by the Direc23 tor annually for inflation); and
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1 ‘‘(B) the recovery activities determined

2 warranted with respect to those payment activi3 ties.

4 ‘‘(b) REQUEST FOR EXEMPTION.—The head of an ex5 ecutive agency required to conduct a recovery audit under

6 subsection (a)(1) may request that the Director exempt

7 a payment activity, in whole or in part, from that require8 ment if the head of the executive agency determines and

9 can demonstrate that the exemption is justified on any

10 basis described in section 3566(a) of this title.

11 ‘‘(c) PROCEDURES.—

12 ‘‘(1) IN GENERAL.—The head of each executive

13 agency shall prescribe procedures for the perform14 ance of recovery audits and recovery activities in the

15 agency that implement this section in a manner de16 signed to ensure the greatest financial benefit to the

17 United States.

18 ‘‘(2) SPECIFIC PROCEDURES.—In conducting

19 recovery audits and recovery activities under this

20 section, the head of an executive agency—

21 ‘‘(A) shall consult and coordinate with the

22 Chief Financial Officer and the Inspector Gen23 eral of the agency to avoid any duplication of

24 effort;
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1 ‘‘(B) may conduct recovery audits and re2 covery activities regarding payments by the ex3 ecutive agency by using personnel of the agen4 cy’s payment office without reimbursement or

5 payment for services in accordance with the

6 standards issued by the Director under section

7 3565(b)(2) of this title, by procuring the per8 formance of recovery audits by contractors, or

9 by any combination of both methods; and

10 ‘‘(C) shall ensure that the recovery audits

11 and recovery activities are carried out con12 sistent with the standards issued by the Direc13 tor under section 3565(b)(2) of this title.

14 ‘‘(d) RECOVERY AUDIT CONTRACTS.—

15 ‘‘(1) AUTHORITY TO USE CONTINGENCY CON16 TRACTS.—Notwithstanding section 3302(b) of this

17 title, as consideration for performance of any recov18 ery audit procured by an executive agency, the head

19 of the executive agency may pay the recovery audit

20 contractor an amount equal to a percentage of the

21 total amount collected by the United States as a re22 sult of payment errors identified by the recovery

23 audit contractor in the audit.

24 ‘‘(2) CONSTRUCTION.—
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1 ‘‘(A) RELATIONSHIP TO OTHER EXECU2 TIVE AUTHORITIES.—A contract for the per3 formance of a recovery audit shall not affect—

4 ‘‘(i) any authority of the head of an

5 executive agency, or any other person,

6 under the Contract Disputes Act of 1978

7 (41 U.S.C. 601 et seq.) and other applica8 ble laws, including authority to initiate liti9 gation or referrals for litigation; or

10 ‘‘(ii) the requirements of sections

11 3711, 3716, 3718, and 3720 of this title

12 that the head of an executive agency re13 solve disputes, compromise, or terminate

14 payment of error claims, collect by offset,

15 and otherwise engage in recovery activities

16 with respect to payment errors identified

17 by the recovery audit.

18 ‘‘(B) CONTRACTOR AUTHORITIES AND DU19 TIES.—Nothing in this subchapter shall be con20 strued to authorize a recovery audit contractor

21 with an executive agency—

22 ‘‘(i) to require the production of any

23 record or information by any person other

24 than an officer, employee, or agent of the

25 executive agency; or
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1 ‘‘(ii) to establish, or otherwise have, a

2 physical presence on the property or prem3 ises of any private sector entity as part of

4 its contractual obligations to an executive

5 agency.

6 ‘‘(3) REQUIRED CONTRACT TERMS AND CONDI7 TIONS.—The head of an executive agency shall in8 clude in each contract for the procurement of the

9 performance of a recovery audit the following re10 quirements:

11 ‘‘(A) That the recovery audit contractor

12 protect from improper use and from disclosure

13 to any person inside or outside the recovery

14 audit contractor’s firm who is not directly in15 volved in the identification or recovery of pay16 ment errors—

17 ‘‘(i) any financial information that is

18 viewed or obtained in the course of car19 rying out a recovery audit for an executive

20 agency; and

21 ‘‘(ii) any other information so viewed

22 or obtained that has not been released for

23 general public use by the audited person or

24 an authorized agent of that person.
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1 ‘‘(B) That the recovery audit contractor

2 submit to the head of the executive agency peri3 odic reports on conditions giving rise to pay4 ment errors identified by the recovery audit

5 contractor and any recommendations on how to

6 mitigate such conditions.

7 ‘‘(C) That the recovery audit contractor

8 notify the head of the executive agency of any

9 payment errors identified by the contractor per10 taining to the executive agency or to another

11 executive agency that are beyond the scope of

12 the contract.

13 ‘‘(D) That the recovery audit contractor

14 promptly notify the head of the executive agen15 cy of any indication of fraud or other criminal

16 activity discovered in the course of the audit.

17 ‘‘(4) EXECUTIVE AGENCY ACTION FOLLOWING

18 NOTIFICATION.—The head of an executive agency

19 shall take prompt and appropriate action in response

20 to a notification by a recovery audit contractor pur21 suant to the requirements under paragraph (3), in22 cluding forwarding to the head of another executive

23 agency any information that applies to that agency.

24 ‘‘(5) CONTRACTING REQUIREMENTS.—Before

25 contracting for any recovery audit, the head of an
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1 executive agency shall determine and compare the

2 cost of using employees of the United States to per3 form the audit and the cost of procuring the per4 formance of the audit from the private sector. The

5 head of the executive agency shall use the outcome

6 of the cost comparison process to determine whether

7 to use the employees of the United States or to pro8 cure recovery audit services from the private sector.

9 ‘‘(e) RELATIONSHIP TO AUTHORITY OF INSPECTORS

10 GENERAL.—Nothing in this subchapter shall be construed

11 as impairing the authority of an Inspector General under

12 the Inspector General Act of 1978 or any other provision

13 of law.

14 ‘‘(f) RELATIONSHIP TO REQUIREMENTS FOR PAY15 MENTS FOR TRANSPORTATION.—Nothing in this sub16 chapter shall be construed to affect the requirements and

17 authorities provided in section 3726 of this title.

18 ‘‘(g) PRIVACY PROTECTIONS.—

19 ‘‘(1) LIMITATION ON DISCLOSURE OF INDIVID20 UALLY IDENTIFIABLE INFORMATION.—

21 ‘‘(A) RESTRICTION.—Any recovery audit

22 contractor that obtains individually identifiable

23 information on a person through the perform24 ance of a recovery audit or recovery activity

25 under this subchapter may disclose that infor-
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1 mation only for the purpose of such audit or ac2 tivity, respectively, and for the oversight of such

3 audit or activity, unless otherwise authorized by

4 that person.

5 ‘‘(B) SANCTIONS.—Any person that vio6 lates subparagraph (A) shall be liable for any

7 damages (including nonpecuniary damages,

8 costs, and attorneys’ fees) caused by the viola9 tion.

10 ‘‘(2) RETURN OF INFORMATION.—

11 ‘‘(A) REQUIREMENT.—Upon the date de12 termined under subparagraph (B), a recovery

13 audit contractor having possession of individ14 ually identifiable information disclosed in the

15 course of a recovery audit or recovery activity

16 that is performed under this subchapter by the

17 recovery audit contractor shall return it to the

18 person from whom it was obtained unless an19 other applicable law requires retention of the

20 information.

21 ‘‘(B) TIME FOR RETURN OF INFORMA22 TION.—The date referred to in subparagraph

23 (A) is the date of the conclusion of the matter

24 or need for which the information was dis25 closed, except that if, on that date, the recovery
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1 audit contractor has actual notice of any over2 sight of the recovery audit or recovery activity,

3 the date referred to in subparagraph (A) is the

4 date of the conclusion of such oversight.

5 ‘‘§ 3563. Disposition of amounts collected

6 ‘‘(a) IN GENERAL.—Notwithstanding section

7 3302(b) of this title, the total amount collected in a fiscal

8 year by the United States as a result of recovery audits

9 by an executive agency under this subchapter shall be dis10 posed of in accordance with this section.

11 ‘‘(b) USE FOR RECOVERY AUDIT COSTS.—

12 ‘‘(1) CONTRACTOR PAYMENTS.—Amounts re13 ferred to in subsection (a) shall be available to the

14 executive agency to pay amounts owed to any recov15 ery audit contractor for performance of the audit.

16 ‘‘(2) OTHER COSTS.—Subject to the limitation

17 in subsection (e), amounts referred to in subsection

18 (a) shall be available to the executive agency—

19 ‘‘(A) to reimburse any applicable appro20 priation for other recovery audit costs incurred

21 by the executive agency with respect to the

22 audit; and

23 ‘‘(B) to pay any fees authorized under

24 chapter 37 of this title.
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1 ‘‘(c) USE FOR MANAGEMENT IMPROVEMENT PRO2 GRAM.—Subject to the limitation in subsection (e), up to

3 a total of 25 percent (as determined under the guidance

4 issued under section 3565 of this title) of the amount re5 ferred to in subsection (a)—

6 ‘‘(1) shall be available to the executive agency

7 to carry out the management improvement program

8 of the agency under section 3564 of this title; and

9 ‘‘(2) may be credited for that purpose by the

10 head of the executive agency to any agency appro11 priation that is available for obligation at the time

12 of the collection and shall be merged with other

13 amounts in, and shall remain available for the same

14 period as, the appropriation to which credited.

15 ‘‘(d) REMAINDER TO TREASURY.—Subject to the lim16 itation in subsection (e), there shall be deposited into the

17 Treasury as miscellaneous receipts a sum equal to—

18 ‘‘(1) 50 percent of the amount referred to in

19 subsection (a); plus

20 ‘‘(2) any of that amount that remains

21 unallocated after the application of subsections (b)

22 and (c).

23 ‘‘(e) LIMITATION ON APPLICATION.—

24 ‘‘(1) IN GENERAL.—This section does not apply

25 to amounts collected through recovery audits and re-
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1 covery activities to the extent that such application

2 would be inconsistent with another provision of law

3 that authorizes the crediting of the amounts to a

4 nonappropriated fund instrumentality, revolving

5 fund, working-capital fund, trust fund, or other fund

6 or account.

7 ‘‘(2) AMOUNTS PAID OUT OF CURRENTLY

8 AVAILABLE FUNDS.—Subsections (b)(2), (c), and (d)

9 shall not apply to amounts collected through recov10 ery audits and recovery activities that were paid out

11 of an appropriation or fund that remains available

12 for obligation at the time the amounts are collected.

13 ‘‘§ 3564. Management improvement program

14 ‘‘(a) IN GENERAL.—

15 ‘‘(1) REQUIRED PROGRAM.—The head of each

16 executive agency that is required to conduct recovery

17 audits under section 3562 of this title shall conduct

18 a management improvement program under this sec19 tion, consistent with guidelines prescribed by the Di20 rector.

21 ‘‘(2) DISCRETIONARY PROGRAM.—The head of

22 any other executive agency that conducts recovery

23 audits under section 3562 of this title that meet the

24 standards issued by the Director under section
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1 3565(b)(2) may conduct a management improve2 ment program under this section.

3 ‘‘(b) PROGRAM FEATURES.—In conducting a man4 agement improvement program under this section, the

5 head of an executive agency—

6 ‘‘(1) shall, as the first priority of the program,

7 address problems that contribute directly to payment

8 errors of the executive agency; and

9 ‘‘(2) may seek to reduce errors and waste in

10 other programs and operations of that executive

11 agency by improving the executive agency’s staff ca12 pabilities, information technology, and financial

13 management.

14 ‘‘(c) INTEGRATION WITH OTHER ACTIVITIES.—The

15 head of an executive agency—

16 ‘‘(1) subject to paragraph (2), may integrate

17 the program under this section, in whole or in part,

18 with other management improvement programs and

19 activities of that agency or other executive agencies;

20 and

21 ‘‘(2) shall retain the ability to account specifi22 cally for the use of amounts available to the execu23 tive agency under section 3563 of this title.
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1 ‘‘§ 3565. Responsibilities of the Director of the Office

2 of Management and Budget

3 ‘‘(a) IN GENERAL.—The Director shall coordinate

4 and oversee the implementation of this subchapter.

5 ‘‘(b) GUIDANCE.—

6 ‘‘(1) IN GENERAL.—The Director, in consulta7 tion with the Chief Financial Officers Council and

8 the President’s Council on Integrity and Efficiency,

9 shall issue guidance and provide support to the exec10 utive agencies for the implementation of this sub11 chapter.

12 ‘‘(2) RECOVERY AUDIT STANDARDS.—The Di13 rector shall include in the guidance standards for

14 the performance of recovery audits under this sub15 chapter. The Director shall develop the guidance in

16 consultation with the Comptroller General and pri17 vate sector experts on recovery audits, including

18 such experts who use recovery auditing as part of

19 their financial management procedures.

20 ‘‘(3) TREATMENT OF UNDERPAYMENTS.—The

21 guidance developed under this subsection shall in22 clude specific standards and procedures for the iden23 tification and disposition of facial-discrepancy pay24 ment errors that result in underpayments to ven25 dors.
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1 ‘‘(c) FEE LIMITATIONS.—The Director may limit the

2 percentage amounts that may be paid to recovery audit

3 contractors under section 3562(d)(1) of this title.

4 ‘‘§ 3566. Exemptions

5 ‘‘(a) IN GENERAL.—The Director may exempt an ex6 ecutive agency, in whole or in part, from the requirement

7 to conduct recovery audits under section 3562(a)(1) of

8 this title if the Director determines that compliance with

9 the requirement—

10 ‘‘(1) would impair the performance of the agen11 cy’s mission; or

12 ‘‘(2) would not, or would no longer, be cost-ef13 fective.

14 ‘‘(b) REPORT TO CONGRESS.—The Director shall

15 promptly report the basis of any determination made and

16 exemption granted under subsection (a)(1) to Congress.

17 ‘‘(c) EXEMPTION OF CERTAIN CONTRACTS.—The re18 quirements of section 3562(a) of this title shall not apply

19 to any of the following contracts:

20 ‘‘(1) A contract that provides for periodic audit

21 of invoices pursuant to section 2313 of title 10 or

22 section 304C of the Federal Property and Adminis23 trative Services Act of 1949 (41 U.S.C. 254d).

24 ‘‘(2) A contract for which cost or pricing data

25 were required to be provided pursuant to section
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1 2306a of title 10 or section 304A of the Federal

2 Property and Administrative Services Act of 1949

3 (41 U.S.C. 254b).

4 ‘‘(3) A contract that is subject to cost account5 ing standards issued by the Cost Accounting Stand6 ards Board under section 26 of the Office of Federal

7 Procurement Policy Act (41 U.S.C. 422).’’.

8 (2) The table of sections at the beginning of such

9 chapter 35 is amended by adding at the end the following:

‘‘SUBCHAPTER VI—RECOVERY AUDITS

‘‘Sec.

‘‘3561. Definitions.

‘‘3562. Recovery audit requirement.

‘‘3563. Disposition of amounts collected.

‘‘3564. Management improvement program.

‘‘3565. Responsibilities of the Director of the Office of Management and

Budget.

‘‘3566. Exemptions.’’.

10 (b) APPLICATION TO ALL EXECUTIVE AGENCIES.—

11 Section 3501 of title 31, United States Code, is amended

12 by inserting ‘‘and subchapter VI of this chapter’’ after

13 ‘‘section 3513’’.

14 (c) INITIAL OMB GUIDANCE.—The Director of the

15 Office of Management and Budget shall issue initial guid16 ance under section 3565(b) of title 31, United States Code

17 (as added by subsection (a)), not later than 180 days after

18 the date of the enactment of this Act. The initial guidance

19 shall include the standards required by paragraph (2) of

20 such section.
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1 (d) INITIAL RECOVERY AUDITS.—(1) The head of

2 each executive agency shall begin the first recovery audit

3 under section 3562(a)(1) of title 31, United States Code

4 (as added by subsection (a)), for payment activities re5 ferred to in that section by not later than 18 months after

6 the date of the enactment of this Act.

7 (2) The first recovery audit shall cover fiscal year

8 2001, the preceding fiscal year, and any additional fiscal

9 years before fiscal year 2000 that the head of the executive

10 agency determines that it is practical and cost-effective to

11 conduct, subject to any limitation regarding the period for

12 recordkeeping that is provided under applicable law.

13 (e) USE OF RESULTS.—A determination of whether

14 an individual is an original source for the purposes of sec15 tion 3730(e)(4) of title 31, United States Code, may not

16 be based in whole or in part on results of any recovery

17 audit conducted under section 3562 of such title.

18 (f) RECOVERY AUDIT PILOT PROGRAMS.—(1) The

19 Director of the Office of Management and Budget may

20 designate one or more executive agencies to carry out a

21 recovery audit pilot program for payment activities not de22 scribed in section 3561(8) of title 31, United States Code

23 (as added by subsection (a)), that involve payments to en24 tities providing services or making payments for or on be25 half of the Federal Government pursuant to contracts,
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1 grants, or other arrangements with the executive agency

2 or agencies. The Director shall consult with the head of

3 the executive agency before designating an executive agen4 cy to carry out a pilot program under this subsection.

5 (2) The purposes of a pilot program of an executive

6 agency under this subsection are as follows:

7 (A) To test the feasibility and effectiveness of

8 conducting recovery audits with respect to payment

9 activities other than those related to Federal con10 tracts for the procurement of goods or services to

11 support the performance of the executive agency’s

12 mission.

13 (B) To develop best practices for conducting re14 covery audits with respect to such payment activi15 ties.

16 (3) A recovery audit pilot program conducted under

17 this subsection shall be subject to the same authorities,

18 conditions, and limitations as other recovery audits con19 ducted under subchapter VI of chapter 35 of title 31,

20 United States Code (as added by subsection (a)).

21 (g) REPORTS.—(1) Not later than 30 months after

22 the date of the enactment of this Act, and annually for

23 each of the two years thereafter, the Director of the Office

24 of Management and Budget shall submit a report on the

25 implementation of subchapter VI of chapter 35 of title 31,
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1 United States Code (as added by subsection (a)), to the

2 President and Congress. Each report shall include the fol3 lowing:

4 (A) A general description and evaluation of the

5 steps taken by the heads of executive agencies to

6 conduct recovery audits, including an inventory of

7 the programs and activities of each executive agency

8 that are subject to recovery audits.

9 (B) An assessment of the benefits of recovery

10 audits and recovery activities, including amounts

11 identified and recovered (including by administrative

12 offset).

13 (C) An identification of best practices that

14 could be applied to future recovery audits and recov15 ery activities.

16 (D) An identification of any significant prob17 lems or barriers to more effective performance of re18 covery audits and recovery activities.

19 (E) A description of executive agency expendi20 tures in the recovery audit process.

21 (F) A description of executive agency manage22 ment improvement programs under section 3564 of

23 title 31, United States Code (as added by subsection

24 (a)).
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1 (G) Any recommendations for changes in execu2 tive agency practices or law or other improvements

3 that the Director believes would enhance the effec4 tiveness of the performance of executive agency re5 covery audits.

6 (H) A description and evaluation of each recov7 ery audit pilot program conducted under subsection

8 (f).

9 (2) Not later than 60 days after the submittal of each

10 report under paragraph (1), the Comptroller General of

11 the United States shall submit a report on the implemen12 tation of subchapter VI of chapter 35 of title 31, United

13 States Code, to Congress and the Director of the Office

14 of Management and Budget.

15 (h) STUDY.—(1) The Director of the Office of Man16 agement and Budget shall conduct a study of the effects

17 of recovery audits conducted by the heads of executive

18 agencies. The effects identified in the study shall include

19 any significant problems relating to the provision of im20 proper or inadequate notice of recovery audits to persons

21 who are audited.

22 (2) The Director shall submit a report on the study

23 to Congress. The report shall contain the Director’s find24 ings, conclusions, and recommendations resulting from the

25 study.

Calendar No. 950

106TH CONGRESS

2D SESSION S. 3030

[Report No. 106–502]

A BILL

To amend title 31, United States Code, to provide

for executive agencies to conduct annual recoveryaudits and recovery activities, and for other purposes.

OCTOBER 12 (legislative day, SEPTEMBER 22), 2000

Reported without amendment