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— 
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(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. 
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(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.