II

106TH CONGRESS

2D SESSION S. 3030

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 introduced the following bill; which was read twice and

referred to the Committee on Governmental Affairs

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,

3 SECTION 1. RECOVERY AUDITS.

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

5 35 of title 31, United States Code, is amended by adding

6 at the end the following:

7 ‘‘SUBCHAPTER VI—RECOVERY AUDITS

8 ‘‘§ 3561. Definitions

9 ‘‘In this subchapter:
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1 ‘‘(1) AMOUNTS COLLECTED.—The term

2 ‘amounts collected’ means monies received or cred3 ited, by any means, including offset, by the United

4 States Government.

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

6 ‘Chief Financial Officer’ means—

7 ‘‘(A) the official appointed or designated

8 under section 901 of this title; or

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

10 that is not required to have a Chief Financial

11 Officer under that section, an official of the

12 agency whose authority and functions are sub13 stantially equivalent to the authority and func14 tions of an agency Chief Financial Officer

15 under section 902 of this title.

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

17 the Director of the Office of Management and Budg18 et.

19 ‘‘(4) DISCLOSE.—The term ‘disclose’, with re20 spect to individually identifiable information on any

21 person, means release, publish, transfer, provide ac22 cess to, or otherwise divulge the individually identifi23 able information to any other person.

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

25 The term ‘facial-discrepancy payment error’—
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1 ‘‘(A) means, except as provided in sub2 paragraph (B), any error in a payment made by

3 an executive agency for goods or services that

4 is apparent from a review of the face of an in5 voice or other payment document that is pre6 sented to the executive agency by the supplier

7 of the goods or services in the usual and cus8 tomary conduct of business or pursuant to a re9 quirement in law or a contract to substantiate

10 the claim for the payment, including any such

11 document that is presented electronically; and

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

13 identified, resulting, or supported from a docu14 ment that is—

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

16 that is maintained solely by the supplier of

17 the goods or services;

18 ‘‘(ii) not specifically required to be

19 presented to the executive agency by con20 tract, law, or regulation, or not necessary

21 for the substantiation of the claim for the

22 payment; or

23 ‘‘(iii) submitted to the executive agen24 cy for evaluative purposes before the award
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1 of the contract under which the payment

2 was made.

3 ‘‘(6) INDIVIDUALLY IDENTIFIABLE INFORMA4 TION.—The term ‘individually identifiable informa5 tion’, with respect to a person, means any informa6 tion, whether oral or recorded in any form or me7 dium, that identifies the person or with respect to

8 which there is a reasonable basis to believe that the

9 information can be used to identify the person.

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

11 respect to a payment activity, recovery audit, or re12 covery activity, means activities by a Federal, State,

13 or local governmental entity to enforce laws relating

14 to, to investigate, or to regulate such audit or activ15 ity.

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

17 activity’ means an executive agency activity to pay

18 nongovernmental sources for goods or services ac19 quired from those sources by the agency to support

20 the performance of the agency’s mission.

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

22 audit’ means a financial management technique of

23 an executive agency that is used by the executive

24 agency to perform internal audits of its records to

25 identify facial-discrepancy payment errors that are
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1 made by the executive agency in connection with a

2 payment activity, including facial-discrepancy pay3 ment errors that result from any of the following:

4 ‘‘(A) Duplicate payments.

5 ‘‘(B) Invoice errors.

6 ‘‘(C) Failure to take advantage of applica7 ble discounts, rebates, or other allowances.

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

9 payment errors resulting in inaccurate pay10 ments, including underpayments identified pur11 suant to guidance issued under section

12 3565(b)(3) of this title.

13 ‘‘(10) RECOVERY ACTIVITY.—The term ‘recov14 ery activity’ means an executive agency activity to

15 attempt to collect, under the authority of chapter 37

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

17 error identified in a recovery audit.

18 ‘‘(11) RECOVERY AUDIT CONTRACTOR.—The

19 term ‘recovery audit contractor’ means any private

20 sector person who is obligated under a contract en21 tered into with an executive agency to perform a re22 covery audit for the executive agency.

23 ‘‘§ 3562. Recovery audit requirement

24 ‘‘(a) IN GENERAL.—Except as exempted under sec25 tion 3566 of this title, the head of each executive agency—
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1 ‘‘(1) shall conduct each fiscal year—

2 ‘‘(A) recovery audits of the payment activi3 ties of the agency for the preceding fiscal year

4 if the payment activities for the fiscal year total

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

6 annually for inflation); and

7 ‘‘(B) the recovery activities determined

8 warranted with respect to those payment activi9 ties; and

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

11 ‘‘(A) recovery audits of the payment activi12 ties of the agency for the preceding fiscal year

13 if the payment activities for the fiscal year total

14 less than $500,000,000 (adjusted by the Direc15 tor annually for inflation); and

16 ‘‘(B) the recovery activities determined

17 warranted with respect to those payment activi18 ties.

19 ‘‘(b) REQUEST FOR EXEMPTION.—The head of an ex20 ecutive agency required to conduct a recovery audit under

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

22 a payment activity, in whole or in part, from that require23 ment if the head of the executive agency determines and

24 can demonstrate that the exemption is justified on any

25 basis described in section 3566(a) of this title.
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1 ‘‘(c) PROCEDURES.—

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

3 agency shall prescribe procedures for the perform4 ance of recovery audits and recovery activities in the

5 agency that implement this section in a manner de6 signed to ensure the greatest financial benefit to the

7 United States.

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

9 recovery audits and recovery activities under this

10 section, the head of an executive agency—

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

12 Chief Financial Officer and the Inspector Gen13 eral of the agency to avoid any duplication of

14 effort;

15 ‘‘(B) may conduct recovery audits and re16 covery activities regarding payments by the ex17 ecutive agency by using personnel of the agen18 cy’s payment office without reimbursement or

19 payment for services in accordance with the

20 standards issued by the Director under section

21 3565(b)(2) of this title, by procuring the per22 formance of recovery audits by contractors, or

23 by any combination of both methods; and

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

25 and recovery activities are carried out con-
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1 sistent with the standards issued by the Direc2 tor under section 3565(b)(2) of this title.

3 ‘‘(d) RECOVERY AUDIT CONTRACTS.—

4 ‘‘(1) AUTHORITY TO USE CONTINGENCY CON5 TRACTS.—Notwithstanding section 3302(b) of this

6 title, as consideration for performance of any recov7 ery audit procured by an executive agency, the head

8 of the executive agency may pay the recovery audit

9 contractor an amount equal to a percentage of the

10 total amount collected by the United States as a re11 sult of payment errors identified by the recovery

12 audit contractor in the audit.

13 ‘‘(2) CONSTRUCTION.—

14 ‘‘(A) RELATIONSHIP TO OTHER EXECU15 TIVE AUTHORITIES.—A contract for the per16 formance of a recovery audit shall not affect—

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

18 executive agency, or any other person,

19 under the Contract Disputes Act of 1978

20 (41 U.S.C. 601 et seq.) and other applica21 ble laws, including authority to initiate liti22 gation or referrals for litigation; or

23 ‘‘(ii) the requirements of sections

24 3711, 3716, 3718, and 3720 of this title

25 that the head of an executive agency re-
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1 solve disputes, compromise, or terminate

2 payment of error claims, collect by offset,

3 and otherwise engage in recovery activities

4 with respect to payment errors identified

5 by the recovery audit.

6 ‘‘(B) CONTRACTOR AUTHORITIES AND DU7 TIES.—Nothing in this subchapter shall be con8 strued to authorize a recovery audit contractor

9 with an executive agency—

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

11 record or information by any person other

12 than an officer, employee, or agent of the

13 executive agency; or

14 ‘‘(ii) to establish, or otherwise have, a

15 physical presence on the property or prem16 ises of any private sector entity as part of

17 its contractual obligations to an executive

18 agency.

19 ‘‘(3) REQUIRED CONTRACT TERMS AND CONDI20 TIONS.—The head of an executive agency shall in21 clude in each contract for the procurement of the

22 performance of a recovery audit the following re23 quirements:

24 ‘‘(A) That the recovery audit contractor

25 protect from improper use and from disclosure
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1 to any person inside or outside the recovery

2 audit contractor’s firm who is not directly in3 volved in the identification or recovery of pay4 ment errors—

5 ‘‘(i) any financial information that is

6 viewed or obtained in the course of car7 rying out a recovery audit for an executive

8 agency; and

9 ‘‘(ii) any other information so viewed

10 or obtained that has not been released for

11 general public use by the audited person or

12 an authorized agent of that person.

13 ‘‘(B) That the recovery audit contractor

14 submit to the head of the executive agency peri15 odic reports on conditions giving rise to pay16 ment errors identified by the recovery audit

17 contractor and any recommendations on how to

18 mitigate such conditions.

19 ‘‘(C) That the recovery audit contractor

20 notify the head of the executive agency of any

21 payment errors identified by the contractor per22 taining to the executive agency or to another

23 executive agency that are beyond the scope of

24 the contract.
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1 ‘‘(D) That the recovery audit contractor

2 promptly notify the head of the executive agen3 cy of any indication of fraud or other criminal

4 activity discovered in the course of the audit.

5 ‘‘(4) EXECUTIVE AGENCY ACTION FOLLOWING

6 NOTIFICATION.—The head of an executive agency

7 shall take prompt and appropriate action in response

8 to a notification by a recovery audit contractor pur9 suant to the requirements under paragraph (3), in10 cluding forwarding to the head of another executive

11 agency any information that applies to that agency.

12 ‘‘(5) CONTRACTING REQUIREMENTS.—Before

13 contracting for any recovery audit, the head of an

14 executive agency shall determine and compare the

15 cost of using employees of the United States to per16 form the audit and the cost of procuring the per17 formance of the audit from the private sector. The

18 head of the executive agency shall use the outcome

19 of the cost comparison process to determine whether

20 to use the employees of the United States or to pro21 cure recovery audit services from the private sector.

22 ‘‘(e) RELATIONSHIP TO AUTHORITY OF INSPECTORS

23 GENERAL.—Nothing in this subchapter shall be construed

24 as impairing the authority of an Inspector General under
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1 the Inspector General Act of 1978 or any other provision

2 of law.

3 ‘‘(f) RELATIONSHIP TO REQUIREMENTS FOR PAY4 MENTS FOR TRANSPORTATION.—Nothing in this sub5 chapter shall be construed to affect the requirements and

6 authorities provided in section 3726 of this title.

7 ‘‘(g) PRIVACY PROTECTIONS.—

8 ‘‘(1) LIMITATION ON DISCLOSURE OF INDIVID9 UALLY IDENTIFIABLE INFORMATION.—

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

11 contractor that obtains individually identifiable

12 information on a person through the perform13 ance of a recovery audit or recovery activity

14 under this subchapter may disclose that infor15 mation only for the purpose of such audit or ac16 tivity, respectively, and for the oversight of such

17 audit or activity, unless otherwise authorized by

18 that person.

19 ‘‘(B) SANCTIONS.—Any person that vio20 lates subparagraph (A) shall be liable for any

21 damages (including nonpecuniary damages,

22 costs, and attorneys’ fees) caused by the viola23 tion.

24 ‘‘(2) RETURN OF INFORMATION.—
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1 ‘‘(A) REQUIREMENT.—Upon the date de2 termined under subparagraph (B), a recovery

3 audit contractor having possession of individ4 ually identifiable information disclosed in the

5 course of a recovery audit or recovery activity

6 that is performed under this subchapter by the

7 recovery audit contractor shall return it to the

8 person from whom it was obtained unless an9 other applicable law requires retention of the

10 information.

11 ‘‘(B) TIME FOR RETURN OF INFORMA12 TION.—The date referred to in subparagraph

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

14 or need for which the information was dis15 closed, except that if, on that date, the recovery

16 audit contractor has actual notice of any over17 sight of the recovery audit or recovery activity,

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

19 date of the conclusion of such oversight.

20 ‘‘§ 3563. Disposition of amounts collected

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

22 3302(b) of this title, the total amount collected in a fiscal

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

24 by an executive agency under this subchapter shall be dis25 posed of in accordance with this section.
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1 ‘‘(b) USE FOR RECOVERY AUDIT COSTS.—

2 ‘‘(1) CONTRACTOR PAYMENTS.—Amounts re3 ferred to in subsection (a) shall be available to the

4 executive agency to pay amounts owed to any recov5 ery audit contractor for performance of the audit.

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

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

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

9 ‘‘(A) to reimburse any applicable appro10 priation for other recovery audit costs incurred

11 by the executive agency with respect to the

12 audit; and

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

14 chapter 37 of this title.

15 ‘‘(c) USE FOR MANAGEMENT IMPROVEMENT PRO16 GRAM.—Subject to the limitation in subsection (e), up to

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

18 issued under section 3565 of this title) of the amount re19 ferred to in subsection (a)—

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

21 to carry out the management improvement program

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

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

24 head of the executive agency to any agency appro25 priation that is available for obligation at the time
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1 of the collection and shall be merged with other

2 amounts in, and shall remain available for the same

3 period as, the appropriation to which credited.

4 ‘‘(d) REMAINDER TO TREASURY.—Subject to the lim5 itation in subsection (e), there shall be deposited into the

6 Treasury as miscellaneous receipts a sum equal to—

7 ‘‘(1) 50 percent of the amount referred to in

8 subsection (a); plus

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

10 unallocated after the application of subsections (b)

11 and (c).

12 ‘‘(e) LIMITATION ON APPLICATION.—

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

14 to amounts collected through recovery audits and re15 covery activities to the extent that such application

16 would be inconsistent with another provision of law

17 that authorizes the crediting of the amounts to a

18 nonappropriated fund instrumentality, revolving

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

20 or account.

21 ‘‘(2) AMOUNTS PAID OUT OF CURRENTLY

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

23 shall not apply to amounts collected through recov24 ery audits and recovery activities that were paid out
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1 of an appropriation or fund that remains available

2 for obligation at the time the amounts are collected.

3 ‘‘§ 3564. Management improvement program

4 ‘‘(a) IN GENERAL.—

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

6 executive agency that is required to conduct recovery

7 audits under section 3562 of this title shall conduct

8 a management improvement program under this sec9 tion, consistent with guidelines prescribed by the Di10 rector.

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

12 any other executive agency that conducts recovery

13 audits under section 3562 of this title that meet the

14 standards issued by the Director under section

15 3565(b)(2) may conduct a management improve16 ment program under this section.

17 ‘‘(b) PROGRAM FEATURES.—In conducting a man18 agement improvement program under this section, the

19 head of an executive agency—

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

21 address problems that contribute directly to payment

22 errors of the executive agency; and

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

24 other programs and operations of that executive

25 agency by improving the executive agency’s staff ca-
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1 pabilities, information technology, and financial

2 management.

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

4 head of an executive agency—

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

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

7 with other management improvement programs and

8 activities of that agency or other executive agencies;

9 and

10 ‘‘(2) shall retain the ability to account specifi11 cally for the use of amounts available to the execu12 tive agency under section 3563 of this title.

13 ‘‘§ 3565. Responsibilities of the Director of the Office

14 of Management and Budget

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

16 and oversee the implementation of this subchapter.

17 ‘‘(b) GUIDANCE.—

18 ‘‘(1) IN GENERAL.—The Director, in consulta19 tion with the Chief Financial Officers Council and

20 the President’s Council on Integrity and Efficiency,

21 shall issue guidance and provide support to the exec22 utive agencies for the implementation of this sub23 chapter.

24 ‘‘(2) RECOVERY AUDIT STANDARDS.—The Di25 rector shall include in the guidance standards for
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1 the performance of recovery audits under this sub2 chapter. The Director shall develop the guidance in

3 consultation with the Comptroller General and pri4 vate sector experts on recovery audits, including

5 such experts who use recovery auditing as part of

6 their financial management procedures.

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

8 guidance developed under this subsection shall in9 clude specific standards and procedures for the iden10 tification and disposition of facial-discrepancy pay11 ment errors that result in underpayments to ven12 dors.

13 ‘‘(c) FEE LIMITATIONS.—The Director may limit the

14 percentage amounts that may be paid to recovery audit

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

16 ‘‘§ 3566. Exemptions

17 ‘‘(a) IN GENERAL.—The Director may exempt an ex18 ecutive agency, in whole or in part, from the requirement

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

20 this title if the Director determines that compliance with

21 the requirement—

22 ‘‘(1) would impair the performance of the agen23 cy’s mission; or

24 ‘‘(2) would not, or would no longer, be cost-ef25 fective.
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1 ‘‘(b) REPORT TO CONGRESS.—The Director shall

2 promptly report the basis of any determination made and

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

4 ‘‘(c) EXEMPTION OF CERTAIN CONTRACTS.—The re5 quirements of section 3562(a) of this title shall not apply

6 to any of the following contracts:

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

8 of invoices pursuant to section 2313 of title 10 or

9 section 304C of the Federal Property and Adminis10 trative Services Act of 1949 (41 U.S.C. 254d).

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

12 were required to be provided pursuant to section

13 2306a of title 10 or section 304A of the Federal

14 Property and Administrative Services Act of 1949

15 (41 U.S.C. 254b).

16 ‘‘(3) A contract that is subject to cost account17 ing standards issued by the Cost Accounting Stand18 ards Board under section 26 of the Office of Federal

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

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

21 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.’’.
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1 (b) APPLICATION TO ALL EXECUTIVE AGENCIES.—

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

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

4 ‘‘section 3513’’.

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

6 Office of Management and Budget shall issue initial guid7 ance under section 3565(b) of title 31, United States Code

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

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

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

11 such section.

12 (d) INITIAL RECOVERY AUDITS.—(1) The head of

13 each executive agency shall begin the first recovery audit

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

15 (as added by subsection (a)), for payment activities re16 ferred to in that section by not later than 18 months after

17 the date of the enactment of this Act.

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

19 2001, the preceding fiscal year, and any additional fiscal

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

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

22 conduct, subject to any limitation regarding the period for

23 recordkeeping that is provided under applicable law.

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

25 an individual is an original source for the purposes of sec-
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1 tion 3730(e)(4) of title 31, United States Code, may not

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

3 audit conducted under section 3562 of such title.

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

5 Director of the Office of Management and Budget may

6 designate one or more executive agencies to carry out a

7 recovery audit pilot program for payment activities not de8 scribed in section 3561(8) of title 31, United States Code

9 (as added by subsection (a)), that involve payments to en10 tities providing services or making payments for or on be11 half of the Federal Government pursuant to contracts,

12 grants, or other arrangements with the executive agency

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

14 the executive agency before designating an executive agen15 cy to carry out a pilot program under this subsection.

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

17 agency under this subsection are as follows:

18 (A) To test the feasibility and effectiveness of

19 conducting recovery audits with respect to payment

20 activities other than those related to Federal con21 tracts for the procurement of goods or services to

22 support the performance of the executive agency’s

23 mission.
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1 (B) To develop best practices for conducting re2 covery audits with respect to such payment activi3 ties.

4 (3) A recovery audit pilot program conducted under

5 this subsection shall be subject to the same authorities,

6 conditions, and limitations as other recovery audits con7 ducted under subchapter VI of chapter 35 of title 31,

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

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

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

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

12 of Management and Budget shall submit a report on the

13 implementation of subchapter VI of chapter 35 of title 31,

14 United States Code (as added by subsection (a)), to the

15 President and Congress. Each report shall include the fol16 lowing:

17 (A) A general description and evaluation of the

18 steps taken by the heads of executive agencies to

19 conduct recovery audits, including an inventory of

20 the programs and activities of each executive agency

21 that are subject to recovery audits.

22 (B) An assessment of the benefits of recovery

23 audits and recovery activities, including amounts

24 identified and recovered (including by administrative

25 offset).
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1 (C) An identification of best practices that

2 could be applied to future recovery audits and recov3 ery activities.

4 (D) An identification of any significant prob5 lems or barriers to more effective performance of re6 covery audits and recovery activities.

7 (E) A description of executive agency expendi8 tures in the recovery audit process.

9 (F) A description of executive agency manage10 ment improvement programs under section 3564 of

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

12 (a)).

13 (G) Any recommendations for changes in execu14 tive agency practices or law or other improvements

15 that the Director believes would enhance the effec16 tiveness of the performance of executive agency re17 covery audits.

18 (H) A description and evaluation of each recov19 ery audit pilot program conducted under subsection

20 (f).

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

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

23 the United States shall submit a report on the implemen24 tation of subchapter VI of chapter 35 of title 31, United
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1 States Code, to Congress and the Director of the Office

2 of Management and Budget.

3 (h) STUDY.—(1) The Director of the Office of Man4 agement and Budget shall conduct a study of the effects

5 of recovery audits conducted by the heads of executive

6 agencies. The effects identified in the study shall include

7 any significant problems relating to the provision of im8 proper or inadequate notice of recovery audits to persons

9 who are audited.

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

11 to Congress. The report shall contain the Director’s find12 ings, conclusions, and recommendations resulting from the

13 study.

Æ