significant 
improper 
payments, 
notwithstanding 
paragraphs (a)(3)(A) and (a)(3)(B), any program or 
activity that— 
‘‘(A) has or is expected to have outlays ex-
ceeding $100,000,000 in any one of its first 
three fiscal years of operation; and 
‘‘(B) is in its first four years of oper-
ation.’’; and 
(2) in subsection (c)(1), by striking ‘‘subsection 
(a)(1)’’ and inserting in its place ‘‘subsection (a)(1) 
or (a)(4)’’. 
SEC. 4. ANTI-FRAUD REPORT REQUIREMENT. 
Section 3357 of title 31, United States Code, is 
amended by striking subsection (d) and inserting the fol-
lowing: 
‘‘(d) REPORTS.— 
‘‘(1) IN GENERAL.—For each fiscal year begin-
ning in the first fiscal year after the date of the en-
actment of the Enhancing Improper Payment Ac-
countability Act, each agency shall submit to Con-
gress, in the report containing the annual financial 
statement of the agency, a report on the progress of 
the agency in— 
‘‘(A) implementing— 
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‘‘(i) the financial and administrative 
controls required to be established under 
subsection (c); 
‘‘(ii) the fraud risk principles in the 
Standards for Internal Control in the Fed-
eral Government; and 
‘‘(iii) Office of Management and 
Budget Circular A–123 with respect to the 
leading practices for managing fraud risk; 
‘‘(B) 
identifying 
fraud 
risks 
and 
vulnerabilities, 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) ADDITIONAL REQUIREMENTS.—Any report 
under paragraph (1) shall include, as defined by the 
leading practices identified in the report published 
by the Government Accountability Office on July 28, 
2015, titled ‘Framework for Managing Fraud Risks 
in Federal Programs’— 
‘‘(A) identification of— 
‘‘(i) any dedicated entity that leads 
the agency’s fraud risk management activi-
ties and its roles; 
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‘‘(ii) responsibilities of such entity, in-
cluding any program or operation for 
which that entity is responsible; 
‘‘(iii) capacity, including any limita-
tions, to strategically manage fraud risks; 
and 
‘‘(iv) any program or operation for 
which there is not a dedicated entity that 
leads fraud risk management activities, 
along with a detailed justification for not 
having a dedicated entity; 
‘‘(B) status of the agency’s fraud risk pro-
files, including the date of the last update and 
date of planned update, for all programs and 
operations, and if there is not a fraud risk pro-
file for a program or operation, a detailed jus-
tification for why such program or operation 
does not have such a profile; and 
‘‘(C) status of the agency’s antifraud strat-
egies, including the date of last update and date 
of planned update, for all programs and oper-
ations, and if there is not an antifraud strategy 
for a program or operation, a detailed justifica-
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tion for why such program or operation does 
not have such a strategy.’’. 
Æ 
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