Fraud Reduction and Data Analytics Act of 2015

Bill: 114-hr-4180
Sponsor: full_name: Rep. Meadows, Mark [R-NC-11]
Introduced: 2015-12-03
Policy area: Government Operations and Politics
Subjects: Accounting and auditing

Administrative law and regulatory procedures

Congressional oversight

Debt collection

Executive agency funding and structure

Fraud offenses and financial crimes

Government information and archives

Government studies and investigations

Office of Management and Budget (OMB)
Latest action: action_date: 2016-02-09
text: Placed on the Union Calendar, Calendar No. 320.

Summaries:
action_date: 2015-12-03
action_desc: Introduced in House
text: <p><strong>Fraud Reduction and Data Analytics Act of 2015</strong></p> <p>This bill requires the Office of Management and Budget (OMB) to establish guidelines for federal 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.</p> <p>The guidelines shall incorporate the leading practices identified in the report published by the Government Accountability Office on July 28, 2015, entitled &quot;Framework for Managing Fraud Risks in Federal Programs.&quot; </p> <p>The financial and administrative controls shall include:</p> <ul> <li> 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; </li> <li> 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 </li> <li> using the results of monitoring, evaluation, audits, and investigations to improve fraud prevention, detection, and response.</li> </ul> <p>Each agency shall submit as part of its annual financial report a report on its progress in:</p> <ul> <li> implementing such financial and administrative controls, the fraud risk principle in the Standards for Internal Control in the Federal Government, and OMB Circular A-123 leading practices for managing fraud risk; </li> <li> identifying risks and vulnerabilities to fraud; and </li> <li> establishing steps to curb fraud.</li> </ul> <p>The OMB must establish a working group to: (1) improve the sharing of financial and administrative controls and other best practices and techniques for detecting, preventing, and responding to fraud and the sharing and development of data analytics techniques; and (2) submit a plan for a federal interagency library of data analytics and data sets for use by agencies and Offices of Inspectors General to facilitate the detection, prevention, and recovery of fraud.</p>

action_date: 2016-02-09
action_desc: Reported to House without amendment
text: <p>(This measure has not been amended since it was introduced. The summary has been expanded because action occurred on the measure.)</p> <p><strong>Fraud Reduction and Data Analytics Act of 2015</strong></p> <p>(Sec. 3) This bill requires the Office of Management and Budget (OMB) to establish guidelines for federal 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.</p> <p>The guidelines shall incorporate the leading practices identified in the report published by the Government Accountability Office on July 28, 2015, entitled &quot;Framework for Managing Fraud Risks in Federal Programs.&quot; </p> <p>The financial and administrative controls shall include:</p> <ul> <li> 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; </li> <li> 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 </li> <li> using the results of monitoring, evaluation, audits, and investigations to improve fraud prevention, detection, and response.</li> </ul> <p>Each agency shall submit as part of its annual financial report a report on its progress in:</p> <ul> <li> implementing such financial and administrative controls, the fraud risk principle in the Standards for Internal Control in the Federal Government, and OMB Circular A-123 leading practices for managing fraud risk; </li> <li> identifying risks and vulnerabilities to fraud; and </li> <li> establishing steps to curb fraud.</li> </ul> <p>(Sec. 4) The OMB must establish a working group to: (1) improve the sharing of financial and administrative controls and other best practices and techniques for detecting, preventing, and responding to fraud and the sharing and development of data analytics techniques; and (2) submit a plan for a federal interagency library of data analytics and data sets for use by agencies and Offices of Inspectors General to facilitate the detection, prevention, and recovery of fraud.</p>

tv_txt: I 114th CONGRESS 1st Session H. R. 4180 IN THE HOUSE OF REPRESENTATIVES December 3, 2015 Mr. Meadows (for himself and Mr. Connolly ) introduced the following bill; which was referred to the Committee on Oversight and Government Reform A BILL 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.

1. Short title This Act may be cited as the Fraud Reduction and Data Analytics Act of 2015 . 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). 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— (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. 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. (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.

tv_txt: IB Union Calendar No. 320 114th CONGRESS 2d Session H. R. 4180 [Report No. 114–419] IN THE HOUSE OF REPRESENTATIVES December 3, 2015 Mr. Meadows (for himself and Mr. Connolly ) introduced the following bill; which was referred to the Committee on Oversight and Government Reform February 9, 2016 Additional sponsors: Mr. Mulvaney and Ms. Duckworth February 9, 2016 Committed to the Committee of the Whole House on the State of the Union and ordered to be printed A BILL 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.

1. Short title This Act may be cited as the Fraud Reduction and Data Analytics Act of 2015 . 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). 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— (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. 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. (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.

February 9, 2016 Committed to the Committee of the Whole House on the State of the Union and ordered to be printed