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[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 2133 Enrolled Bill (ENR)]

        S.2133

                     One Hundred Fourteenth Congress

                                 of the

                        United States of America

                          AT THE SECOND SESSION

           Begun and held at the City of Washington on Monday,
           the fourth day of January, two thousand and sixteen

                                 An Act

 
  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.

    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 ``Fraud Reduction and Data Analytics 
Act of 2015''.
SEC. 2. DEFINITIONS.
    In this Act--
        (1) the term ``agency'' has the meaning given the term in 
    section 551 of title 5, United States Code; and
        (2) the term ``improper payment'' has the meaning given the 
    term in section 2(g) of the Improper Payments Information Act of 
    2002 (31 U.S.C. 3321 note).
SEC. 3. ESTABLISHMENT OF FINANCIAL AND ADMINISTRATIVE CONTROLS RELATING 
TO FRAUD AND IMPROPER PAYMENTS.
    (a) Guidelines.--
        (1) In general.--Not later than 90 days after the date of 
    enactment of this Act, the Director of the Office of Management and 
    Budget, in consultation with the Comptroller General of the United 
    States, shall establish guidelines for agencies to establish 
    financial and administrative controls to identify and assess fraud 
    risks and design and implement control activities in order to 
    prevent, detect, and respond to fraud, including improper payments.
        (2) Contents.--The guidelines described in paragraph (1) shall 
    incorporate the leading practices identified in the report 
    published by the Government Accountability Office on July 28, 2015, 
    entitled ``Framework for Managing Fraud Risks in Federal 
    Programs''.
        (3) Modification.--The Director of the Office of Management and 
    Budget, in consultation with the Comptroller General of the United 
    States, may periodically modify the guidelines described in 
    paragraph (1) as the Director and Comptroller General may determine 
    necessary.
    (b) Requirements for Controls.--The financial and administrative 
controls required to be established by agencies under subsection (a) 
shall include--
        (1) conducting an evaluation of fraud risks and using a risk-
    based approach to design and implement financial and administrative 
    control activities to mitigate identified fraud risks;
        (2) collecting and analyzing data from reporting mechanisms on 
    detected fraud to monitor fraud trends and using that data and 
    information to continuously improve fraud prevention controls; and
        (3) using the results of monitoring, evaluation, audits, and 
    investigations to improve fraud prevention, detection, and 
    response.
    (c) Reports.--
        (1) In general.--Except as provided in paragraph (2), for each 
    of the first 3 fiscal years beginning after the date of enactment 
    of this Act, each agency shall submit to Congress, as part of the 
    annual financial report of the agency, a report on the progress of 
    the agency in--
            (A) implementing--
                (i) the financial and administrative controls required 
            to be established under subsection (a);
                (ii) the fraud risk principle in the Standards for 
            Internal Control in the Federal Government; and
                (iii) Office of Management and Budget Circular A-123 
            with respect to the leading practices for managing fraud 
            risk;
            (B) identifying risks and vulnerabilities to fraud, 
        including with respect to payroll, beneficiary payments, 
        grants, large contracts, and purchase and travel cards; and
            (C) establishing strategies, procedures, and other steps to 
        curb fraud.
        (2) First report.--If the date of enactment of this Act is less 
    than 180 days before the date on which an agency is required to 
    submit the annual financial report of the agency, the agency may 
    submit the report required under paragraph (1) as part of the 
    following annual financial report of the agency.
SEC. 4. WORKING GROUP.
    (a) Establishment.--Not later than 180 days after the date of 
enactment of this Act, the Office of Management and Budget shall 
establish a working group to improve--
        (1) the sharing of financial and administrative controls 
    established under section 3(a) and other best practices and 
    techniques for detecting, preventing, and responding to fraud, 
    including improper payments; and
        (2) the sharing and development of data analytics techniques.
    (b) Composition.--The working group established under subsection 
(a) shall be composed of--
        (1) the Controller of the Office of Management and Budget, who 
    shall serve as Chairperson;
        (2) the Chief Financial Officer of each agency; and
        (3) any other party determined to be appropriate by the 
    Director of the Office of Management and Budget, which may include 
    the Chief Information Officer, the Chief Procurement Officer, or 
    the Chief Operating Officer of each agency.
    (c) Consultation.--The working group established under subsection 
(a) shall consult with Offices of Inspectors General and Federal and 
non-Federal experts on fraud risk assessments, financial controls, and 
other relevant matters.
    (d) Meetings.--The working group established under subsection (a) 
shall hold not fewer than 4 meetings per year.
    (e) Plan.--Not later than 270 days after the date of enactment of 
this Act, the working group established under subsection (a) shall 
submit to Congress a plan for the establishment and use of a Federal 
interagency library of data analytics and data sets, which can 
incorporate or improve upon existing Federal resources and capacities, 
for use by agencies and Offices of Inspectors General to facilitate the 
detection, prevention, and recovery of fraud, including improper 
payments.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.
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