II 

Calendar No. 391 

114TH CONGRESS 

2D SESSION S. 2133 

[Report No. 114–229] 

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, Ms. BALDWIN, and Ms. AYOTTE)) introduced the following 

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

Security and Governmental Affairs 

MARCH 15, 2016 

Reported by Mr. JOHNSON, without amendment 

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. 


asabaliauskas on DSK3SPTVN1PROD with BILLS
2 

•S 2133 RS

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’’. 

6 SEC. 2. DEFINITIONS. 

7 In this Act— 

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

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

10 Code; and 

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

12 meaning given the term in section 2(g) of the Im13 proper Payments Information Act of 2002 (31 

14 U.S.C. 3321 note). 

15 SEC. 3. ESTABLISHMENT OF FINANCIAL AND ADMINISTRA16 TIVE CONTROLS RELATING TO FRAUD AND 

17 IMPROPER PAYMENTS. 

18 (a) GUIDELINES.— 

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

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

21 the Office of Management and Budget, in consulta22 tion with the Comptroller General of the United 

23 States, shall establish guidelines for agencies to es24 tablish financial and administrative controls to iden25 tify and assess fraud risks and design and impleVerDate Sep 11 2014 22:12 Mar 15, 2016 Jkt 059200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S2133.RS S2133

asabaliauskas on DSK3SPTVN1PROD with BILLS
3 

•S 2133 RS

1 ment control activities in order to prevent, detect, 

2 and respond to fraud, including improper payments. 

3 (2) CONTENTS.—The guidelines described in 

4 paragraph (1) shall incorporate the leading practices 

5 identified in the report published by the Government 

6 Accountability Office on July 28, 2015, entitled 

7 ‘‘Framework for Managing Fraud Risks in Federal 

8 Programs’’. 

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

10 of Management and Budget, in consultation with the 

11 Comptroller General of the United States, may peri12 odically modify the guidelines described in paragraph 

13 (1) as the Director and Comptroller General may de14 termine necessary. 

15 (b) REQUIREMENTS FOR CONTROLS.—The financial 

16 and administrative controls required to be established by 

17 agencies under subsection (a) shall include— 

18 (1) conducting an evaluation of fraud risks and 

19 using a risk-based approach to design and imple20 ment financial and administrative control activities 

21 to mitigate identified fraud risks; 

22 (2) collecting and analyzing data from reporting 

23 mechanisms on detected fraud to monitor fraud 

24 trends and using that data and information to con25 tinuously improve fraud prevention controls; and 


asabaliauskas on DSK3SPTVN1PROD with BILLS
4 

•S 2133 RS

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

2 audits, and investigations to improve fraud preven3 tion, detection, and response. 

4 (c) REPORTS.— 

5 (1) IN GENERAL.—Except as provided in para6 graph (2), for each of the first 3 fiscal years begin7 ning after the date of enactment of this Act, each 

8 agency shall submit to Congress, as part of the an9 nual financial report of the agency, a report on the 

10 progress of the agency in— 

11 (A) implementing— 

12 (i) the financial and administrative 

13 controls required to be established under 

14 subsection (a); 

15 (ii) the fraud risk principle in the 

16 Standards for Internal Control in the Fed17 eral Government; and 

18 (iii) Office of Management and Budg19 et Circular A–123 with respect to the lead20 ing practices for managing fraud risk; 

21 (B) identifying risks and vulnerabilities to 

22 fraud, including with respect to payroll, bene23 ficiary payments, grants, large contracts, and 

24 purchase and travel cards; and 


asabaliauskas on DSK3SPTVN1PROD with BILLS
5 

•S 2133 RS

1 (C) establishing strategies, procedures, and 

2 other steps to curb fraud. 

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

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

5 which an agency is required to submit the annual fi6 nancial report of the agency, the agency may submit 

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

8 the following annual financial report of the agency. 

9 SEC. 4. WORKING GROUP. 

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

11 the date of enactment of this Act, the Office of Manage12 ment and Budget shall establish a working group to im13 prove— 

14 (1) the sharing of financial and administrative 

15 controls established under section 3(a) and other 

16 best practices and techniques for detecting, pre17 venting, and responding to fraud, including improper 

18 payments; and 

19 (2) the sharing and development of data ana20 lytics techniques. 

21 (b) COMPOSITION.—The working group established 

22 under subsection (a) shall be composed of— 

23 (1) the Controller of the Office of Management 

24 and Budget, who shall serve as Chairperson; and 

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


asabaliauskas on DSK3SPTVN1PROD with BILLS
6 

•S 2133 RS

1 (c) CONSULTATION.—The working group established 

2 under subsection (a) shall consult with Offices of Inspec3 tors General and Federal and non-Federal experts on 

4 fraud risk assessments, financial controls, and other rel5 evant matters. 

6 (d) MEETINGS.—The working group established 

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

8 per year. 

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

10 of enactment of this Act, the working group established 

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

12 the establishment and use of a Federal interagency library 

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

14 improve upon existing Federal resources and capacities, 

15 for use by agencies and Offices of Inspectors General to 

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

17 including improper payments. 


asabaliauskas on DSK3SPTVN1PROD with BILLS

asabaliauskas on DSK3SPTVN1PROD with BILLS
Calendar No. 391 

114TH CONGRESS 

2D SESSION S. 2133 

[Report No. 114–229] 

A BILL 

To improve Federal agency financial and adminissponding to fraud, including improper payments. for the purpose of identifying, preventing, and re- agencies’ development and use of data analytics mitigate fraud risks, and to improve Federal trative controls and procedures to assess and 

MARCH 15, 2016 

Reported without amendment 


asabaliauskas on DSK3SPTVN1PROD with BILLS