II 

112TH CONGRESS 

2D SESSION S. 3600 

To expand the Federal Funding Accountability and Transparency Act of 

2006 to increase accountability and transparency in Federal spending, 

and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 20, 2012 

Mr. WARNER (for himself and Mr. PORTMAN) introduced the following bill; 

which was read twice and referred to the Committee on Homeland Security and Governmental Affairs 

A BILL 

To expand the Federal Funding Accountability and Transparency Act of 2006 to increase accountability and transparency in Federal spending, 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. SHORT TITLE. 

4 This Act may be cited as the ‘‘Digital Accountability 

5 and Transparency Act of 2012’’. 

6 SEC. 2. PURPOSES. 

7 The purposes of this Act are to— 

8 (1) expand the Federal Funding Accountability 

9 and Transparency Act of 2006 by disclosing direct 


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1 Federal agency expenditures and linking Federal 

2 contract, loan, and grant spending information to 

3 programs of Federal agencies in order to enable tax4 payers and policy makers to track Federal spending 

5 more effectively; 

6 (2) provide consistent, reliable, and searchable 

7 Government-wide spending data that is displayed ac8 curately for taxpayers and policy makers on 

9 USASpending.gov; 

10 (3) analyze Federal spending data to 

11 proactively prevent waste, fraud, abuse, and im12 proper payments; 

13 (4) simplify reporting for entities receiving Fed14 eral funds by streamlining reporting requirements 

15 and reducing compliance costs while improving 

16 transparency; and 

17 (5) improve the quality of data submitted to 

18 USASpending.gov by holding Federal agencies ac19 countable for the completeness and accuracy of the 

20 data submitted. 


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1 SEC. 3. AMENDMENTS TO THE FEDERAL FUNDING AC2 COUNTABILITY AND TRANSPARENCY ACT OF 

3 2006. 

4 (a) IN GENERAL.—Section 2 of the Federal Funding 

5 Accountability and Transparency Act of 2006 (31 U.S.C. 

6 6101 note) is amended— 

7 (1) in the section heading, by striking ‘‘FULL

8 DISCLOSURE OF ENTITIES RECEIVING FED9 ERAL FUNDING’’ and inserting ‘‘DISCLOSURE OF

10 FEDERAL FUNDING’’; 

11 (2) in subsection (a)— 

12 (A) by redesignating paragraphs (1), (2), 

13 and (3) as paragraphs (2), (4), and (8), respec14 tively; 

15 (B) by inserting before paragraph (2), as 

16 redesignated by subparagraph (A), the fol17 lowing: 

18 ‘‘(1) BOARD.—The term ‘Board’ means the 

19 Federal Accountability and Spending Transparency 

20 Board established under subsection (g)(1).’’; 

21 (C) by inserting after paragraph (2), as re22 designated by subparagraph (A), the following: 

23 ‘‘(3) FEDERAL AGENCY.—The term ‘Federal 

24 agency’ has the meaning given the term ‘Executive 

25 agency’ under section 105 of title 5, United States 

26 Code.’’; 


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1 (D) by inserting after paragraph (4), as 

2 redesignated by subparagraph (A), the fol3 lowing: 

4 ‘‘(5) FEDERAL FUNDS.—The term ‘Federal 

5 funds’ means any funds that are made available to 

6 or expended by a Federal agency. 

7 ‘‘(6) OBJECT CLASS.—The term ‘object class’ 

8 means the category assigned for purposes of the an9 nual budget of the President submitted under sec10 tion 1105(a) of title 31, United States Code, to the 

11 type of property or services purchased by the Fed12 eral Government. 

13 ‘‘(7) PROGRAM ACTIVITY.—The term ‘program 

14 activity’ has the meaning given that term under sec15 tion 1115(h) of title 31, United States Code.’’; and 

16 (E) in paragraph (8), as redesignated by 

17 subparagraph (A)— 

18 (i) in subparagraph (B), by striking 

19 ‘‘paragraph (2)(A)(i)’’ and inserting ‘‘para20 graph (4)(A)(i)’’; and 

21 (ii) in subparagraph (C), by striking 

22 ‘‘paragraph (2)(A)(Ii)’’ and inserting 

23 ‘‘paragraph (4)(A)(ii)’’; 

24 (3) in subsection (b)(1)— 


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1 (A) by redesignating subparagraphs (A) 

2 through (G) as clauses (i) through (vii), respec3 tively, and adjusting the margin accordingly; 

4 and 

5 (B) by striking ‘‘for each Federal award— 

6 ’’ and inserting the following: ‘‘for all Federal 

7 funds— 

8 ‘‘(A) for each Federal agency, component 

9 of a Federal agency, appropriations account, 

10 program activity, and object class (including 

11 any subcomponent of an object class), and other 

12 accounts or data as appropriate— 

13 ‘‘(i) the amount of budget authority 

14 available; 

15 ‘‘(ii) the amount obligated; 

16 ‘‘(iii) the amount of outlays; 

17 ‘‘(iv) the amount of any Federal funds 

18 reprogrammed or transferred; and 

19 ‘‘(v) the amount of expired and unex20 pired unobligated balances; and 

21 ‘‘(B) for each Federal award—’’; 

22 (4) in subsection (c)— 

23 (A) in paragraph (1)— 

24 (i) in the matter preceding subpara25 graph (A), by striking ‘‘and Grants.gov’’ 


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1 and inserting ‘‘Grants.gov, the Payment 

2 Automation Manager and Federal Infor3 mation Repository and other data or data4 bases from the Department of the Treas5 ury, and other data from Federal agencies 

6 collected and identified by the Office of 

7 Management and Budget’’; 

8 (ii) in subparagraph (B), by adding 

9 ‘‘and’’ at the end; and 

10 (iii) by adding at the end the fol11 lowing: 

12 ‘‘(C) specify such search shall be confined 

13 to Federal funds;’’; 

14 (B) in paragraph (2), by inserting ‘‘the 

15 Payment Automation Manager and Federal In16 formation Repository and other data or data17 bases from the Department of the Treasury, 

18 other data from Federal agencies collected and 

19 identified by the Office of Management and 

20 Budget,’’ after ‘‘Grants.gov website,’’; 

21 (C) in paragraph (4)— 

22 (i) by striking ‘‘shall be updated not 

23 later’’ and inserting the following: ‘‘shall 

24 be updated— 

25 ‘‘(A) not later’’; and 


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1 (ii) by adding at the end the fol2 lowing: 

3 ‘‘(B) not less than once each quarter with 

4 information relating to Federal funds; and’’; 

5 (D) in paragraph (5)— 

6 (i) by inserting ‘‘Federal funds and’’ 

7 before ‘‘Federal awards’’ the first place it 

8 appears; 

9 (ii) by striking ‘‘subsection 

10 (a)(2)(A)(i) and those described in sub11 section (a)(2)(A)(ii)’’ and inserting ‘‘sub12 section (a)(4)(A)(i) and those described in 

13 subsection (a)(4)(A)(ii)’’; and 

14 (iii) by striking the period at the end 

15 and inserting ‘‘; and’’; and 

16 (E) by adding at the end the following: 

17 ‘‘(6) shall have the ability to aggregate data for 

18 the categories described in paragraphs (1) through 

19 (5) without double-counting data.’’; 

20 (5) by redesignating subsections (e), (f), and 

21 (g) as subsections (i), (j), and (k), respectively; and 

22 (6) by inserting after subsection (d) the fol23 lowing: 

24 ‘‘(e) DEPARTMENT OF THE TREASURY REQUIRE25 MENTS.— 


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1 ‘‘(1) IN GENERAL.—The Secretary of the 

2 Treasury shall collect and make available to the Of3 fice of Management and Budget financial and pay4 ment data from Federal agencies to assist the Office 

5 of Management and Budget in carrying out this sec6 tion. 

7 ‘‘(2) DATA STANDARDS.— 

8 ‘‘(A) IN GENERAL.—The Secretary of the 

9 Treasury, in consultation with the Director of 

10 the Office of Management and Budget, the 

11 General Services Administration, and the heads 

12 of Federal agencies, shall establish Government13 wide financial data standards for Federal 

14 funds, which may— 

15 ‘‘(i) include common data elements, 

16 such as codes, unique award identifiers, 

17 and fields, for financial and payment infor18 mation required to be reported by Federal 

19 agencies; 

20 ‘‘(ii) to the extent reasonable and 

21 practicable, ensure interoperability and in22 corporate— 

23 ‘‘(I) common data elements de24 veloped and maintained by an inter25 national voluntary consensus standVerDate Mar 15 2010 02:49 Sep 27, 2012 Jkt 019200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S3600.IS S3600

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1 ards body, as defined by the Office of 

2 Management and Budget, such as the 

3 International Organization for Stand4 ardization; 

5 ‘‘(II) common data elements de6 veloped and maintained by Federal 

7 agencies with authority over con8 tracting and financial assistance, such 

9 as the Federal Acquisition Regulatory 

10 Council; and 

11 ‘‘(III) common data elements de12 veloped and maintained by accounting 

13 standards organizations; and 

14 ‘‘(iii) include data reporting standards 

15 that, to the extent reasonable and prac16 ticable— 

17 ‘‘(I) incorporate a widely accept18 ed, nonproprietary, searchable, plat19 form-independent computer-readable 

20 format; 

21 ‘‘(II) be consistent with and im22 plement applicable accounting prin23 ciples; 

24 ‘‘(III) be capable of being contin25 ually upgraded as necessary; and 


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1 ‘‘(IV) incorporate nonproprietary 

2 standards in effect on the date of en3 actment of the Digital Accountability 

4 and Transparency Act of 2012. 

5 ‘‘(B) DEADLINES.— 

6 ‘‘(i) GUIDANCE.—The Secretary of 

7 the Treasury, in consultation with the Di8 rector of the Office of Management and 

9 Budget, shall issue guidance on the data 

10 standards established under subparagraph 

11 (A) to Federal agencies not later than 1 

12 year after the date of enactment of the 

13 Digital Accountability and Transparency 

14 Act of 2012. 

15 ‘‘(ii) AGENCIES.—Not later than 1 

16 year after the date on which the guidance 

17 under clause (i) is issued, each Federal 

18 agency shall collect, report, and maintain 

19 data in accordance with the data standards 

20 established under subparagraph (A). 

21 ‘‘(3) FRAUD CENTER.— 

22 ‘‘(A) IN GENERAL.—The Secretary of the 

23 Treasury, in consultation with the heads and 

24 Inspectors General of Federal agencies, shall 

25 use the data collected under paragraph (1) and 


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1 other available data (including available data 

2 from State and local governments) to detect, 

3 prevent, and recover improper payments 

4 through pre-award, post-award pre-payment, 

5 and post-payment analysis, which shall include 

6 analysis and investigations incorporating— 

7 ‘‘(i) review and data matching of pay8 ments and beneficiary enrollment lists of 

9 State programs carried out using Federal 

10 funds for the purposes of identifying eligi11 bility duplication, residency ineligibility, 

12 duplicate payments, or other potential im13 proper payment issues; 

14 ‘‘(ii) review of multiple Federal agen15 cies and programs for which comparison of 

16 data could show payment duplication; and 

17 ‘‘(iii) review of other information the 

18 Secretary of the Treasury determines are 

19 effective, which may include investigation 

20 or review of information from multiple 

21 Federal agencies or programs. 

22 ‘‘(B) REPORT.—Not later than 180 days 

23 after the date of enactment of the Digital Ac24 countability and Transparency Act of 2012, the 

25 Secretary of the Treasury shall submit to ConVerDate Mar 15 2010 02:49 Sep 27, 2012 Jkt 019200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S3600.IS S3600

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1 gress a report, which may be included as part 

2 of another report submitted to Congress, which 

3 shall include a description of— 

4 ‘‘(i) the implementation of the Fraud 

5 Center described under subparagraph (A); 

6 and 

7 ‘‘(ii) the metrics used in determining 

8 whether the Fraud Center has reduced, or 

9 contributed to the reduction of, improper 

10 payments or improper awards. 

11 ‘‘(4) IMPROVEMENTS TO ACCESS TO DATA.— 

12 ‘‘(A) IN GENERAL.—In order to carry out 

13 this Act, upon request by the Secretary of the 

14 Treasury— 

15 ‘‘(i) the Commissioner of Social Secu16 rity shall make available the Social Secu17 rity earnings information of a living or de18 ceased employee; 

19 ‘‘(ii) the Director of the Bureau of 

20 Prisons shall make available information 

21 relating to Federal prisoners; and 

22 ‘‘(iii) the Secretary of Housing and 

23 Urban Development shall make available 

24 information in the Credit Alert Verification 


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1 System of the Department of Housing and 

2 Urban Development. 

3 ‘‘(B) USE AND PROTECTION OF INFORMA4 TION.—The Secretary of the Treasury— 

5 ‘‘(i) may only use information ob6 tained under subparagraph (A) to assist in 

7 Federal debt collection and in the preven8 tion, identification or recovery of improper 

9 payments; and 

10 ‘‘(ii) shall ensure that data collected 

11 under paragraph (1) is adequately pro12 tected and collected in a manner consistent 

13 with privacy protections provided for by 

14 law. 

15 ‘‘(f) STREAMLINE RECIPIENT FINANCIAL RE16 PORTS.—The Director of the Office of Management and 

17 Budget shall— 

18 ‘‘(1) review the reporting required by Federal 

19 agencies for Federal award recipients to reduce du20 plicative financial reporting and compliance costs for 

21 recipients; 

22 ‘‘(2) request input from Federal award recipi23 ents to reduce duplicative financial reporting, espe24 cially from State and local governments and insti25 tutes of higher education; 


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1 ‘‘(3) provide instructions to the heads of Fed2 eral agencies regarding how to simplify the reporting 

3 requirements for Federal award recipients to reduce 

4 duplicative reporting and reports to reduce compli5 ance costs, as appropriate; and 

6 ‘‘(4) submit to Congress a report regarding any 

7 legislative action required to streamline the report8 ing requirements for Federal award recipients. 

9 ‘‘(g) FEDERAL ACCOUNTABILITY SPENDING AND

10 TRANSPARENCY BOARD.— 

11 ‘‘(1) ESTABLISHMENT.—There is established an 

12 interagency advisory board to be known as the Fed13 eral Accountability and Spending Transparency 

14 Board. 

15 ‘‘(2) MEMBERS.— 

16 ‘‘(A) IN GENERAL.—The Board shall con17 sist of 5 members. 

18 ‘‘(B) APPOINTMENT.—The members of the 

19 Board— 

20 ‘‘(i) shall be appointed by the Presi21 dent; 

22 ‘‘(ii) except as provided in clause (iii), 

23 shall be an Inspector General, Chief Fi24 nancial Officer, or Deputy Secretary of a 

25 Federal agency; and 


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1 ‘‘(iii) shall include not less than one 

2 senior official from the Office of Manage3 ment and Budget. 

4 ‘‘(C) CHAIRPERSON.—The President shall 

5 designate a Chairperson from among the mem6 bers of the Board. 

7 ‘‘(3) RESPONSIBILITIES.—The Board shall— 

8 ‘‘(A) provide strategic direction for enhanc9 ing the transparency of Federal spending based 

10 on the purposes identified in section 2 of the 

11 Digital Accountability and Transparency Act of 

12 2012; 

13 ‘‘(B) monitor the establishment of the Gov14 ernment-wide financial data standards under 

15 subsection (e)(2)(A), to support increased 

16 transparency and accountability; 

17 ‘‘(C) monitor the collection, storage, and 

18 public disclosure of information about Federal 

19 spending transparency and compliance with this 

20 Act; 

21 ‘‘(D) advance efforts to remediate fraud, 

22 waste, and abuse in Federal programs; 

23 ‘‘(E) use the lessons learned from the ac24 tivities of the Recovery Accountability and 

25 Transparency Board; and 


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1 ‘‘(F) solicit input from State and local gov2 ernments, institutes of higher education, and 

3 other Federal award recipients on ways to im4 prove Federal financial reporting. 

5 ‘‘(4) REPORTS.—The Chairperson of the Board, 

6 in consultation with the Director of the Office of 

7 Management and Budget, shall submit on a public 

8 website, to the Committee on Homeland Security 

9 and Governmental Affairs of the Senate and the 

10 Committee on Oversight and Government Reform of 

11 the House of Representatives an annual report re12 garding implementation of this Act. 

13 ‘‘(5) TERMINATION OF SUPERSEDED BOARD.— 

14 Effective on the date on with the President has ap15 pointed all members of the Board, the Government 

16 Accountability and Transparency Board established 

17 under Executive Order 13576 (76 Fed. Reg. 35297) 

18 shall terminate. 

19 ‘‘(h) ACCOUNTABILITY FOR FEDERAL FUNDING.— 

20 ‘‘(1) IN GENERAL.—Not later than 1 year after 

21 the date of enactment of the Digital Accountability 

22 and Transparency Act of 2012, and every 2 years 

23 thereafter, the Inspector General of each Federal 

24 agency, in consultation with the Comptroller General 

25 of the United States, shall submit to Congress and 


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1 make publically available a report on the complete2 ness, timeliness, quality, and accuracy of the data 

3 submitted under this Act by the Federal agency and 

4 the implementation and use of consistent data 

5 standards by the Federal agency. 

6 ‘‘(2) COMPTROLLER GENERAL.— 

7 ‘‘(A) IN GENERAL.—Not later than 2 years 

8 after the date of enactment of the Digital Ac9 countability and Transparency Act of 2012, and 

10 every 2 years thereafter until the date that is 

11 10 years after such date of enactment, and 

12 after review of the reports submitted under 

13 paragraph (1), the Comptroller General of the 

14 United States shall submit to Congress and 

15 make publically available a report on the data 

16 completeness, timeliness, quality, and accuracy 

17 of the data submitted under this Act by each 

18 Federal agency and the implementation and use 

19 of consistent data standards by each Federal 

20 agency. 

21 ‘‘(B) RANKING.—The Comptroller General 

22 of the United States shall make available a 

23 ranking of Federal agencies regarding data 

24 quality, accuracy, and compliance with this 

25 Act.’’. 


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1 (b) CLASSIFIED AND PROTECTED INFORMATION.— 

2 Section 3 of the Federal Funding Accountability and 

3 Transparency Act of 2006 (31 U.S.C. 6101 note) is 

4 amended to read as follows: 

5 ‘‘SEC. 3. CLASSIFIED AND PROTECTED INFORMATION. 

6 ‘‘Nothing in this Act shall require the disclosure to 

7 the public or to any person without an identifiable need 

8 to know— 

9 ‘‘(1) classified information; 

10 ‘‘(2) personally identifiable information; 

11 ‘‘(3) information that would compromise na12 tional security; 

13 ‘‘(4) information that would endanger the per14 sonal safety of all entities employees or clients; or 

15 ‘‘(5) information protected under section 552a 

16 of title 5, United States Code (commonly known as 

17 the ‘Privacy Act of 1974’), or section 6103 of the 

18 Internal Revenue Code of 1986.’’. 

19 (c) EXPANDING ACCESS BY THE SECRETARY OF THE

20 TREASURY TO THE NATIONAL DIRECTORY OF NEW

21 HIRES.—Section 453(j)(9) of the Social Security Act (42 

22 U.S.C. 653(j)(9)) is amended— 

23 (1) in the paragraph heading, by inserting 

24 ‘‘AND IN THE PREVENTION, IDENTIFICATION, AND


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1 RECOVERY OF IMPROPER PAYMENTS’’ after ‘‘COL2 LECTION’’; 

3 (2) in subparagraph (A)— 

4 (A) in the matter preceding clause (i), by 

5 striking ‘‘with respect to persons—’’ and insert6 ing ‘‘to assist in Federal debt collection and in 

7 the prevention, identification, or recovery of im8 proper payments with respect to—’’; 

9 (B) by striking ‘‘who owe’’ and inserting 

10 the following: ‘‘persons— 

11 ‘‘(I) who owe’’; 

12 (C) by striking ‘‘31 U.S.C. 3711(g).’’ and 

13 inserting ‘‘section 3711(g) of title 31, United 

14 States Code; or’’; 

15 (D) redesignating clause (ii) as subclause 

16 (II), and adjusting the margin accordingly; and 

17 (E) by adding at the end the following: 

18 ‘‘(ii) persons— 

19 ‘‘(I) who receive a payment the 

20 head of a Federal executive, judicial, 

21 or legislative agency certifies is under 

22 review to determine the eligibility of 

23 the person to receive the payment; or 

24 ‘‘(II) whose eligibility, or con25 tinuing eligibility, to participate in a 


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1 program of the Federal Government 

2 (including a program administered by 

3 a State or local government) is being 

4 reviewed.’’; 

5 (3) in subparagraph (B), by striking ‘‘to im6 prove collection of the debt’’ and inserting ‘‘for the 

7 purposes’’; 

8 (4) in subparagraph (D), by striking ‘‘of col9 lecting the debt’’; 

10 (5) in subparagraph (E)— 

11 (A) in clause (i), by striking ‘‘of collecting 

12 the debt’’; 

13 (B) in clause (ii), by inserting ‘‘and to a 

14 Federal, State, or local agency in connection 

15 with preventing, identifying, or recovering im16 proper payments as described in subparagraph 

17 (A)’’ before the period at the end; 

18 (C) in clause (iv)(II), by striking ‘‘de19 scribed in subparagraph (A),’’ and all that fol20 lows and inserting ‘‘, in connection with a pur21 pose described in subparagraph (A), to a con22 tractor or agent of either Secretary, to the Fed23 eral agency (including any contractor or agent 

24 of the Federal agency) that referred a debt to 

25 the Secretary of the Treasury for collection, or 


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1 to a Federal, State, or local agency (including 

2 any contractor or agent of any such agency) for 

3 purposes of preventing, identifying, or recov4 ering improper payments, subject to the condi5 tions in clause (iii) and such additional condi6 tions as agreed by the Secretaries.’’; and 

7 (D) in clause (v), by striking ‘‘collecting 

8 the debt’’ and inserting ‘‘the purposes’’; and 

9 (6) in subparagraph (F), by adding at the end 

10 the following: ‘‘The Secretary of the Treasury shall 

11 reimburse the Secretary for any costs attributable to 

12 the prevention, identification, or recovery of im13 proper payments out of any appropriation available 

14 to the Secretary of the Treasury for this purpose.’’. 

15 SEC. 4. EXECUTIVE AGENCY ACCOUNTING AND OTHER FI16 NANCIAL MANAGEMENT REPORTS AND 

17 PLANS. 

18 Section 3512(a) of title 31, United States Code, is 

19 amended— 

20 (1) in paragraph (1), by inserting ‘‘and make 

21 available on the website described under section 

22 1122’’ after ‘‘appropriate committees of Congress’’; 

23 (2) in paragraph (3)(B)(vi), by inserting ‘‘, sys24 tem development, financial management workforce 

25 development, related risk assessment and mitigation 


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1 for the Federal Government as a whole, related risk 

2 assessment and mitigation for executive agencies, 

3 development of capacity to prevent and detect 

4 fraud,’’ after ‘‘equipment acquisitions’’; and 

5 (3) in paragraph (4), by adding at the end the 

6 following: 

7 ‘‘(C) Not later than 90 days after the date of enact8 ment of the Digital Accountability and Transparency Act 

9 of 2012, and every 90 days thereafter, the Director shall 

10 submit to the appropriate committees of the Congress and 

11 make available on the website described under section 

12 1122 a report regarding— 

13 ‘‘(i) specific goals for the most recent full fiscal 

14 year, the fiscal year during which the report is sub15 mitted, and the fiscal year following the year during 

16 which the report is submitted that are necessary 

17 steps toward implementing the Federal Funding Ac18 countability and Transparency Act of 2006 (31 

19 U.S.C. 6101 note) fully and in an effective, efficient, 

20 and accurate manner; 

21 ‘‘(ii) the estimated cost, schedule, and perform22 ance associated with goals described in clause (i) 

23 that relate to capital investments in information 

24 technology; and 


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1 ‘‘(iii) the status and progress achieved toward 

2 each goal described in clause (i), including any 

3 changes to the cost, schedule, or performance base4 lines of achieving each goal, using earned value man5 agement where appropriate.’’. 

Æ 


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