To amend title 31, United States Code, to direct the Director of the Office of Management and Budget to improve oversight of the single audit process, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Government Audit Reform Act of 
2010''.

SEC. 2. SENSE OF CONGRESS.

    It is the sense of Congress that the Director of the Office of 
Management and Budget should follow the recommendations of the 
Government Accountability Office report entitled ``Single Audit: 
Opportunities Exist to Improve the Single Audit Process and Oversight'' 
(GAO-09-307R), issued March 13, 2009.

SEC. 3. OVERSIGHT OF THE SINGLE AUDIT PROCESS.

    (a) Amendment to Single Audit Act.--
            (1) In general.--Chapter 75 of title 31, United States 
        Code, is amended by adding at the end the following new 
        section:
``Sec. 7508. Oversight and evaluation
    ``(a) Oversight and Evaluation.--The Director, or the head of the 
office or entity designated by the Director under subsection (c), shall 
monitor the risk, cost-benefit, efficiency, and effectiveness of the 
implementation by Federal agencies of this chapter by--
            ``(1) evaluating such implementation governmentwide; and
            ``(2) identifying additional guidance and resources 
        necessary to improve such implementation, including revisions 
        to regulations, best practices, and processes.
    ``(b) Report.--The Director, or the head of the office or entity 
designated by the Director under subsection (c), shall submit to the 
Committee on Homeland Security and Governmental Affairs of the Senate, 
the Committee on Oversight and Government Reform of the House of 
Representatives, and the Comptroller General of the United States a 
report that includes the findings under subsection (a). The report 
shall be submitted not later than September 30 of each year and shall 
cover the previous year.
    ``(c) Designation of Oversight Entity.--The Director of the Office 
of Management and Budget shall designate an office in the Office of 
Management and Budget or another Federal entity to act on behalf of the 
Director under subsection (a) and submit to the Committee on Homeland 
Security and Governmental Affairs of the Senate, the Committee on 
Oversight and Government Reform of the House of Representatives, and 
the Comptroller General of the United States a report that describes 
such office or entity and the resources made available to such office 
or entity to adequately implement the provisions of this section.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 75 of title 31, United States Code, is 
        amended by inserting after the item relating to section 7507 
        the following new item:

``7508. Oversight and evaluation.''.
    (b) Simplified Audit Process.--
            (1) Evaluation.--The Director, or the head of the office or 
        entity designated by the Director under section 7508(c) of 
        title 31, United States Code, shall evaluate the process for 
        the single audit and the program-specific audit under chapter 
        75 of title 31, United States Code, to identify simplified 
        alternatives for achieving the purposes of the Single Audit Act 
        of 1984 (Public Law 98-502; 98 Stat. 2327; 31 U.S.C. 7501 note) 
        and the Single Audit Act Amendments of 1996 (Public Law 104-
        156; 110 Stat. 1396; 31 U.S.C. 7501 note) for the audits of 
        small recipients that also achieve the proper balance between 
        risk and cost-effective accountability for small and large 
        recipients.
            (2) Report.--Not later than 6 months after the date of the 
        enactment of this Act, the Director, or the head of the office 
        or entity designated by the Director under section 7508(c) of 
        title 31, United States Code, shall submit to the Committee on 
        Homeland Security and Governmental Affairs of the Senate, the 
        Committee on Oversight and Government Reform of the House of 
        Representatives, and the Comptroller General of the United 
        States, a report on the results of the evaluation under 
        paragraph (1).
            (3) Definitions.--In this subsection:
                    (A) Director.--The term ``Director'' means the 
                Director of the Office of Management and Budget.
                    (B) Large recipient.--The term ``large recipient'' 
                means a non-Federal entity that expends a total amount 
                of Federal awards equal to or in excess of $300,000 or 
                such other amount specified by the Director under 
                section 7502(a)(3) of title 31, United States Code, in 
                any fiscal year.
                    (C) Non-federal entity.--The term ``non-Federal 
                entity'' has the meaning given that term under section 
                7501 of title 31, United States Code.
                    (D) Small recipient.--The term ``small recipient'' 
                means a non-Federal entity that expends a total amount 
                of Federal awards of less than $300,000 or such other 
                amount specified by the Director under section 
                7502(a)(3) of title 31, United States Code, in any 
                fiscal year.
    (c) Implementation of Recommendations To Improve Audit Quality.--
            (1) Evaluation.--The Director of the Office of Management 
        and Budget shall evaluate the implementation of the 
        recommendations made to the Office of Management and Budget by 
        the President's Council on Integrity and Efficiency in the 
        report entitled ``Report on National Single Audit Sampling 
        Project,'' dated June 2007.
            (2) Report.--Not later than 6 months after the date of the 
        enactment of this Act, the Director of the Office of Management 
        and Budget shall submit to the Committee on Homeland Security 
        and Governmental Affairs of the Senate, the Committee on 
        Oversight and Government Reform of the House of 
        Representatives, and the Comptroller General of the United 
        States a report on the results of the evaluation under 
        paragraph (1).
    (d) Deadline for Designation of Oversight Entity.--Not later than 
60 days after the date of the enactment of this Act, the Director of 
the Office of Management and Budget shall designate an office in the 
Office of Management and Budget or another Federal entity under section 
7508(c) of title 31, United States Code.

Summary: Government Audit Reform Act of 2010 - Expresses the sense of Congress that the Director of the Office of Management and Budget (OMB) should follow the recommendations of the Government Accountability Office (GAO) report entitled "Single Audit: Opportunities Exist to Improve the Single Audit Process and Oversight" (GAO-09-307R), issued March 13, 2009.

Amends the Single Audit Act of 1984 to require the OMB Director (or a designee) to monitor and report annually to specified congressional committees and the Comptroller General on the risk, cost-benefit, efficiency, and effectiveness of the implementation of this Act by federal agencies by: (1) evaluating such implementation governmentwide; and (2) identifying additional guidance and resources necessary to improve such implementation, including revisions to regulations, best practices, and processes.

Requires the OMB Director to designate an OMB office or another federal entity (oversight entity) to act on OMB's behalf in such monitoring and reporting.

Requires the OMB Director (or a designated oversight entity) to evaluate and report to specified congressional committees and the Comptroller General on the process for the single audit and the program-specific audit to identify simplified alternatives for achieving the purposes of the Single Audit Act of 1984 and the Single Audit Act Amendments of 1996 for the audits of small recipients that also achieve the proper balance between risk and cost-effective accountability for small and large recipients.

Requires the OMB Director to evaluate and report to specified congressional committees and the Comptroller General on the implementation of the recommendations made to it by the President's Council on Integrity and Efficiency in the report entitled "Report on National Single Audit Sampling Project," dated June 2007.

Establishes a deadline for OMB to designate such oversight entity.