H. R. 4685
One Hundred Seventh Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Wednesday,
the twenty-third day of January, two thousand and two
An Act
To amend title 31, United States Code, to expand the types of Federal agencies
that are required to prepare audited financial statements.
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 ‘‘Accountability of Tax Dollars
Act of 2002’’.
SEC. 2. AMENDMENTS RELATING TO AUDITING REQUIREMENT FOR
FEDERAL AGENCY FINANCIAL STATEMENTS.
(a) IN GENERAL.—Section 3515 of title 31, United States Code,
is amended—
(1) in subsection (a)—
(A) by striking ‘‘Not later’’ and inserting ‘‘(1) Except
as provided in subsection (e), not later’’;
(B) by striking ‘‘each executive agency identified in
section 901(b) of this title’’ and inserting ‘‘each covered
executive agency’’; and
(C) by striking ‘‘1997’’ and inserting ‘‘2003’’;
(2) in subsection (b) by striking ‘‘an executive agency’’ and
inserting ‘‘a covered executive agency’’;
(3) in subsections (c) and (d) by striking ‘‘executive agen-
cies’’ each place it appears and inserting ‘‘covered executive
agencies’’; and
(4) by adding at the end the following:
‘‘(e)(1) The Director of the Office of Management and Budget
may exempt a covered executive agency, except an agency described
in section 901(b), from the requirements of this section with respect
to a fiscal year if—
‘‘(A) the total amount of budget authority available to the
agency for the fiscal year does not exceed $25,000,000; and
‘‘(B) the Director determines that requiring an annual
audited financial statement for the agency with respect to the
fiscal year is not warranted due to the absence of risks associ-
ated with the agency’s operations, the agency’s demonstrated
performance, or other factors that the Director considers rel-
evant.
‘‘(2) The Director shall annually notify the Committee on
Government Reform of the House of Representatives and the Com-
mittee on Governmental Affairs of the Senate of each agency the
Director has exempted under this subsection and the reasons for
each exemption.
‘‘(f) The term ‘covered executive agency’—
H. R. 4685—2
‘‘(1) means an executive agency that is not required by
another provision of Federal law to prepare and submit to
the Congress and the Director of the Office of Management
and Budget an audited financial statement for each fiscal year,
covering all accounts and associated activities of each office,
bureau, and activity of the agency; and
‘‘(2) does not include a corporation, agency, or instrumen-
tality subject to chapter 91 of this title.’’.
(b) WAIVER AUTHORITY.—
(1) IN GENERAL.—The Director of the Office of Management
and Budget may waive the application of all or part of section
3515(a) of title 31, United States Code, as amended by this
section, for financial statements required for the first 2 fiscal
years beginning after the date of the enactment of this Act
for an agency described in paragraph (2) of this subsection.
(2) AGENCIES DESCRIBED.—An agency referred to in para-
graph (1) is any covered executive agency (as that term is
defined by section 3515(f) of title 31, United States Code, as
amended by subsection (a) of this section) that is not an execu-
tive agency identified in section 901(b) of title 31, United States
Code.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.