II 

114TH CONGRESS 

1ST SESSION S. 2133 

To improve Federal agency financial and administrative controls and procedures to assess and mitigate fraud risks, and to improve Federal agencies’ development and use of data analytics for the purpose of identifying, 

preventing, and responding to fraud, including improper payments. 

IN THE SENATE OF THE UNITED STATES 

OCTOBER 5, 2015 

Mr. REID (for Mr. CARPER (for himself, Mr. TILLIS, Mrs. MCCASKILL, Mr. 

JOHNSON, and Ms. BALDWIN)) introduced the following bill; which was 

read twice and referred to the Committee on Homeland Security and 

Governmental Affairs 

A BILL 

To improve Federal agency financial and administrative controls and procedures to assess and mitigate fraud risks, 

and to improve Federal agencies’ development and use 

of data analytics for the purpose of identifying, preventing, and responding to fraud, including improper 

payments. 

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 ‘‘Fraud Reduction and 

5 Data Analytics Act of 2015’’. 


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1 SEC. 2. DEFINITIONS. 

2 In this Act— 

3 (1) the term ‘‘agency’’ has the meaning given 

4 the term in section 551 of title 5, United States 

5 Code; and 

6 (2) the term ‘‘improper payment’’ has the 

7 meaning given the term in section 2(g) of the Im8 proper Payments Information Act of 2002 (31 

9 U.S.C. 3321 note). 

10 SEC. 3. ESTABLISHMENT OF FINANCIAL AND ADMINISTRA11 TIVE CONTROLS RELATING TO FRAUD AND 

12 IMPROPER PAYMENTS. 

13 (a) GUIDELINES.— 

14 (1) IN GENERAL.—Not later than 90 days after 

15 the date of enactment of this Act, the Director of 

16 the Office of Management and Budget, in consulta17 tion with the Comptroller General of the United 

18 States, shall establish guidelines for agencies to es19 tablish financial and administrative controls to iden20 tify and assess fraud risks and design and imple21 ment control activities in order to prevent, detect, 

22 and respond to fraud, including improper payments. 

23 (2) CONTENTS.—The guidelines described in 

24 paragraph (1) shall incorporate the leading practices 

25 identified in the report published by the Government 

26 Accountability Office on July 28, 2015, entitled 


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1 ‘‘Framework for Managing Fraud Risks in Federal 

2 Programs’’. 

3 (3) MODIFICATION.—The Director of the Office 

4 of Management and Budget, in consultation with the 

5 Comptroller General of the United States, may peri6 odically modify the guidelines described in paragraph 

7 (1) as the Director and Comptroller General may de8 termine necessary. 

9 (b) REQUIREMENTS FOR CONTROLS.—The financial 

10 and administrative controls required to be established by 

11 agencies under subsection (a) shall include— 

12 (1) conducting an evaluation of fraud risks and 

13 using a risk-based approach to design and imple14 ment financial and administrative control activities 

15 to mitigate identified fraud risks; 

16 (2) collecting and analyzing data from reporting 

17 mechanisms on detected fraud to monitor fraud 

18 trends and using that data and information to con19 tinuously improve fraud prevention controls; and 

20 (3) using the results of monitoring, evaluation, 

21 audits, and investigations to improve fraud preven22 tion, detection, and response. 

23 (c) REPORTS.— 

24 (1) IN GENERAL.—Except as provided in para25 graph (2), for each of the first 3 fiscal years beginVerDate Sep 11 2014 21:49 Oct 07, 2015 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S2133.IS S2133

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1 ning after the date of enactment of this Act, each 

2 agency shall submit to Congress, as part of the an3 nual financial report of the agency, a report on the 

4 progress of the agency in— 

5 (A) implementing— 

6 (i) the financial and administrative 

7 controls required to be established under 

8 subsection (a); 

9 (ii) the fraud risk principle in the 

10 Standards for Internal Control in the Fed11 eral Government; and 

12 (iii) Office of Management and Budg13 et Circular A–123 with respect to the lead14 ing practices for managing fraud risk; 

15 (B) identifying risks and vulnerabilities to 

16 fraud, including with respect to payroll, bene17 ficiary payments, grants, large contracts, and 

18 purchase and travel cards; and 

19 (C) establishing strategies, procedures, and 

20 other steps to curb fraud. 

21 (2) FIRST REPORT.—If the date of enactment 

22 of this Act is less than 180 days before the date on 

23 which an agency is required to submit the annual fi24 nancial report of the agency, the agency may submit 


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1 the report required under paragraph (1) as part of 

2 the following annual financial report of the agency. 

3 SEC. 4. WORKING GROUP. 

4 (a) ESTABLISHMENT.—Not later than 180 days after 

5 the date of enactment of this Act, the Office of Manage6 ment and Budget shall establish a working group to im7 prove— 

8 (1) the sharing of financial and administrative 

9 controls established under section 3(a) and other 

10 best practices and techniques for detecting, pre11 venting, and responding to fraud, including improper 

12 payments; and 

13 (2) the sharing and development of data ana14 lytics techniques. 

15 (b) COMPOSITION.—The working group established 

16 under subsection (a) shall be composed of— 

17 (1) the Controller of the Office of Management 

18 and Budget, who shall serve as Chairperson; and 

19 (2) the Chief Financial Officer of each agency. 

20 (c) CONSULTATION.—The working group established 

21 under subsection (a) shall consult with Offices of Inspec22 tors General and Federal and non-Federal experts on 

23 fraud risk assessments, financial controls, and other rel24 evant matters. 


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1 (d) MEETINGS.—The working group established 

2 under subsection (a) shall hold not fewer than 4 meetings 

3 per year. 

4 (e) PLAN.—Not later than 270 days after the date 

5 of enactment of this Act, the working group established 

6 under subsection (a) shall submit to Congress a plan for 

7 the establishment and use of a Federal interagency library 

8 of data analytics and data sets, which can incorporate or 

9 improve upon existing Federal resources and capacities, 

10 for use by agencies and Offices of Inspectors General to 

11 facilitate the detection, prevention, and recovery of fraud, 

12 including improper payments. 

Æ 


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