Financial Management Risk Reduction Act

Bill: 118-s-4716
Sponsor: full_name: Sen. Peters, Gary C. [D-MI]
Introduced: 2024-07-11
Policy area: Government Operations and Politics
Subjects: Accounting and auditing

Congressional oversight

Government information and archives
Latest action: action_date: 2024-12-23
text: Became Public Law No: 118-207.

Summaries:
action_date: 2024-11-14
action_desc: Passed Senate
text: <p><strong>Financial Management Risk Reduction Act</strong></p><p>This bill increases federal oversight of single audits submitted by certain recipients of federal awards (i.e., federal financial assistance, including grants, and federal cost reimbursement contracts). A <em>single audit&nbsp;</em>is conducted by an independent auditor and includes the financial statements and federal awards of a non-federal entity.&nbsp;</p><p>Specifically, the bill requires the Office of Management and Budget (OMB) to designate one or more federal agencies to conduct a government-wide analysis of single audit quality.&nbsp;Such government-wide analysis must be completed within three years of the bill's enactment and every six years thereafter.</p><p>OMB must develop a strategy, and the General Services Administration (GSA) must develop analytic tools, to identify risks to federal award funds using Federal Audit Clearinghouse data.</p><p>Within four years of the bill's enactment, the Government Accountability Office must evaluate several related topics, including (1) the effectiveness of such&nbsp;strategy and analytic tools, and (2) reporting burdens for auditors and audited entities.&nbsp;</p>

action_date: 2024-12-23
action_desc: Public Law
text: <p><strong>Financial Management Risk Reduction Act</strong></p><p>This act increases federal oversight of single audits submitted by certain recipients of federal awards (i.e., federal financial assistance, including grants, and federal cost reimbursement contracts). A <em>single audit&nbsp;</em>is conducted by an independent auditor and includes the financial statements and federal awards of a non-federal entity.&nbsp;</p><p>Specifically, the act requires the Office of Management and Budget (OMB) to designate one or more federal agencies to conduct a government-wide analysis of single audit quality.&nbsp;Such government-wide analysis must be completed within three years of enactment and every six years thereafter.</p><p>OMB must develop a strategy, and the General Services Administration must develop analytic tools, to identify risks to federal award funds using Federal Audit Clearinghouse data.</p><p>Within four years of enactment, the Government Accountability Office must evaluate several related topics, including (1) the effectiveness of such&nbsp;strategy and analytic tools, and (2) reporting burdens for auditors and audited entities.&nbsp;</p>

tv_txt: One Hundred Eighteenth Congress of the United States of America 2d Session Begun and held at the City of Washington on Wednesday, the third day of January, two thousand and twenty four S. 4716 IN THE SENATE OF THE UNITED STATES AN ACT To amend section 7504 of title 31, United States Code, to improve the single audit requirements.

1. Short title This Act may be cited as the Financial Management Risk Reduction Act . 2. Single audit improvements Section 7504 of title 31, United States Code, is amended— (1) in subsection (a)— (A) in paragraph (1), by striking , and and inserting a semicolon; (B) in paragraph (2), by striking the period at the end and inserting a semicolon; and (C) by adding at the end the following: (3) participate in and furnish information for the review under subsection (e); and (4) identify recipients that expend $300,000 or more in Federal awards or such other amount specified by the Director under section 7502(a)(3) during the recipient's fiscal year but did not undergo an audit in accordance with this chapter. ; (2) in subsection (c)— (A) in paragraph (1), by adding and at the end; (B) by striking paragraph (2); and (C) by redesignating paragraph (3) as paragraph (2); and (3) by adding at the end the following: (d) Not later than 2 years after the date of enactment of this subsection, and every 2 years thereafter, the Director shall submit to the Committee on Homeland Security and Governmental Affairs of the Senate and the Committee on Oversight and Accountability of the House of Representatives a report listing the recipients identified under subsection (a)(4). (e) (1) The Director shall designate 1 or more Federal agencies to conduct a Government-wide analysis of single audit quality, which may include a consideration of the results of reviews of single audit quality by— (A) Federal agencies; (B) inspectors general of Federal agencies; (C) State auditors; and (D) external peer reviews conducted in accordance with generally accepted government auditing standards. (2) Not later than 3 years after the date of enactment of this subsection, and every 6 years thereafter, the Federal agencies designated under paragraph (1) shall complete a Government-wide analysis of single audit quality. (3) The Director shall submit to the Committee on Homeland Security and Governmental Affairs of the Senate and the Committee on Oversight and Accountability of the House of Representatives and make publicly available a summary of the results of each review under paragraph (2). (f) Not later than 2 years after the date of enactment of this subsection— (1) the Administrator of General Services, in coordination with the Director, the Council on Federal Financial Assistance (or any successor thereto), and key management single audit liaisons of Federal agencies designated as described in section 200.513 of title 2, Code of Federal Regulations (or any successor thereto), shall develop analytic tools to use audit data in the Federal clearinghouse to identify cross-Governmental risks to Federal award funds; and (2) the Director, in coordination with the Administrator of General Services, the Council on Federal Financial Assistance (or any successor thereto), and key management single audit liaisons of Federal agencies designated as described in section 200.513 of title 2, Code of Federal Regulations (or any successor thereto), shall develop a strategy to use audit data in the Federal clearinghouse to identify cross-Governmental risks to Federal award funds. (g) Not later than 4 years after the date of enactment of this subsection, the Comptroller General of the United States shall complete an evaluation of— (1) the effectiveness of the strategy and analytic tools developed under subsection (f); (2) reporting burdens for auditors and audited entities and the capacity of auditors and audited entities to fulfill the requirements under this chapter; and (3) the responsiveness of Federal agencies to repeat single audit findings and corrective action plans. . 3. No additional funds No additional funds are authorized to be appropriated to carry out this Act or the amendments made by this Act.

Speaker of the House of Representatives Vice President of the United States and President of the Senate

tv_txt: 118th CONGRESS 2d Session S. 4716 IN THE SENATE OF THE UNITED STATES AN ACT To amend section 7504 of title 31, United States Code, to improve the single audit requirements.

1. Short title This Act may be cited as the Financial Management Risk Reduction Act . 2. Single audit improvements Section 7504 of title 31, United States Code, is amended— (1) in subsection (a)— (A) in paragraph (1), by striking , and and inserting a semicolon; (B) in paragraph (2), by striking the period at the end and inserting a semicolon; and (C) by adding at the end the following: (3) participate in and furnish information for the review under subsection (e); and (4) identify recipients that expend $300,000 or more in Federal awards or such other amount specified by the Director under section 7502(a)(3) during the recipient's fiscal year but did not undergo an audit in accordance with this chapter. ; (2) in subsection (c)— (A) in paragraph (1), by adding and at the end; (B) by striking paragraph (2); and (C) by redesignating paragraph (3) as paragraph (2); and (3) by adding at the end the following: (d) Not later than 2 years after the date of enactment of this subsection, and every 2 years thereafter, the Director shall submit to the Committee on Homeland Security and Governmental Affairs of the Senate and the Committee on Oversight and Accountability of the House of Representatives a report listing the recipients identified under subsection (a)(4). (e) (1) The Director shall designate 1 or more Federal agencies to conduct a Government-wide analysis of single audit quality, which may include a consideration of the results of reviews of single audit quality by— (A) Federal agencies; (B) inspectors general of Federal agencies; (C) State auditors; and (D) external peer reviews conducted in accordance with generally accepted government auditing standards. (2) Not later than 3 years after the date of enactment of this subsection, and every 6 years thereafter, the Federal agencies designated under paragraph (1) shall complete a Government-wide analysis of single audit quality. (3) The Director shall submit to the Committee on Homeland Security and Governmental Affairs of the Senate and the Committee on Oversight and Accountability of the House of Representatives and make publicly available a summary of the results of each review under paragraph (2). (f) Not later than 2 years after the date of enactment of this subsection— (1) the Administrator of General Services, in coordination with the Director, the Council on Federal Financial Assistance (or any successor thereto), and key management single audit liaisons of Federal agencies designated as described in section 200.513 of title 2, Code of Federal Regulations (or any successor thereto), shall develop analytic tools to use audit data in the Federal clearinghouse to identify cross-Governmental risks to Federal award funds; and (2) the Director, in coordination with the Administrator of General Services, the Council on Federal Financial Assistance (or any successor thereto), and key management single audit liaisons of Federal agencies designated as described in section 200.513 of title 2, Code of Federal Regulations (or any successor thereto), shall develop a strategy to use audit data in the Federal clearinghouse to identify cross-Governmental risks to Federal award funds. (g) Not later than 4 years after the date of enactment of this subsection, the Comptroller General of the United States shall complete an evaluation of— (1) the effectiveness of the strategy and analytic tools developed under subsection (f); (2) reporting burdens for auditors and audited entities and the capacity of auditors and audited entities to fulfill the requirements under this chapter; and (3) the responsiveness of Federal agencies to repeat single audit findings and corrective action plans. . 3. No additional funds No additional funds are authorized to be appropriated to carry out this Act or the amendments made by this Act.

Passed the Senate November 14, 2024. Secretary

tv_txt: II Calendar No. 519 118th CONGRESS 2d Session S. 4716 [Report No. 118–226] IN THE SENATE OF THE UNITED STATES July 11 (legislative day, July 10), 2024 Mr. Peters (for himself and Mr. Johnson ) introduced the following bill; which was read twice and referred to the Committee on Homeland Security and Governmental Affairs September 19, 2024 Reported by Mr. Peters , with an amendment Strike out all after the enacting clause and insert the part printed in italic A BILL To amend section 7504 of title 31, United States Code, to improve the single audit requirements.

1. Short title This Act may be cited as the Financial Management Risk Reduction Act . 2. Single audit improvements Section 7504 of title 31, United States Code, is amended— (1) in subsection (a)— (A) in paragraph (1), by striking , and and inserting a semicolon; (B) in paragraph (2), by striking the period at the end and inserting a semicolon; and (C) by adding at the end the following: (3) participate in and furnish information for the review under subsection (d); and (4) identify, in coordination with the Federal clearinghouse, recipients that expend $300,000 or more in Federal awards or such other amount specified by the Director under section 7502(a)(3) during the recipient's fiscal year but did not undergo an audit in accordance with this chapter. ; (2) in subsection (c)— (A) in paragraph (1), by adding and at the end; (B) by striking paragraph (2); and (C) by redesignating paragraph (3) as paragraph (2); and (3) by adding at the end the following: (d) Not later than 2 years after the date of enactment of this subsection, and every 2 years thereafter, the Director submit to the Committee on Homeland Security and Governmental Affairs of the Senate and the Committee on Oversight and Accountability of the House of Representatives a report listing the recipients identified under subsection (a) (4). (e) (1) The Director shall designate 1 or more Federal agencies to conduct a Government-wide analysis of single audit quality, which may include a consideration of the results of ongoing reviews of single audit quality by— (A) Federal agencies; (B) State auditors; and (C) independent peer review programs. (2) Not later than 3 years after the date of enactment of this subsection, and every 6 years thereafter, the Federal agencies designated under paragraph (1) shall complete a Government-wide analysis of single audit quality, which shall include the views of non-Federal entities regarding single audit quality. (3) The Director shall submit to the Committee on Homeland Security and Governmental Affairs of the Senate and the Committee on Oversight and Accountability of the House of Representatives and make publicly available the results of each review under paragraph (2). (f) Not later than 2 years after the date of enactment of this subsection— (1) the Administrator of General Services, in coordination with the Director, the Council on Federal Financial Assistance (or any successor thereto), and key management single audit liaisons of Federal agencies designated as described in section 200.513 of title 2, Code of Federal Regulations (or any successor thereto), shall develop analytic tools to use audit data in the Federal clearinghouse to identify cross-Governmental risks to Federal award funds; and (2) the Director, in coordination with the Administrator of General Services, the Council on Federal Financial Assistance (or any successor thereto), and key management single audit liaisons of Federal agencies designated as described in section 200.513 of title 2, Code of Federal Regulations (or any successor thereto), shall develop a strategy to use audit data in the Federal clearinghouse to identify cross-Governmental risks to Federal award funds. (g) Not later than 4 years after the date of enactment of this subsection, the Comptroller General of the United States shall complete an evaluation of— (1) the effectiveness of the strategy and analytic tools developed under subsection (f); (2) reporting burdens for auditors and audited entities and the capacity of auditors and audited entities to fulfill the requirements under this chapter; and (3) the responsiveness of Federal agencies to repeat single audit findings and corrective action plans. .

1. Short title This Act may be cited as the Financial Management Risk Reduction Act . 2. Single audit improvements Section 7504 of title 31, United States Code, is amended— (1) in subsection (a)— (A) in paragraph (1), by striking , and and inserting a semicolon; (B) in paragraph (2), by striking the period at the end and inserting a semicolon; and (C) by adding at the end the following: (3) participate in and furnish information for the review under subsection (e); and (4) identify recipients that expend $300,000 or more in Federal awards or such other amount specified by the Director under section 7502(a)(3) during the recipient's fiscal year but did not undergo an audit in accordance with this chapter. ; (2) in subsection (c)— (A) in paragraph (1), by adding and at the end; (B) by striking paragraph (2); and (C) by redesignating paragraph (3) as paragraph (2); and (3) by adding at the end the following: (d) Not later than 2 years after the date of enactment of this subsection, and every 2 years thereafter, the Director shall submit to the Committee on Homeland Security and Governmental Affairs of the Senate and the Committee on Oversight and Accountability of the House of Representatives a report listing the recipients identified under subsection (a)(4). (e) (1) The Director shall designate 1 or more Federal agencies to conduct a Government-wide analysis of single audit quality, which may include a consideration of the results of reviews of single audit quality by— (A) Federal agencies; (B) inspectors general of Federal agencies; (C) State auditors; and (D) external peer reviews conducted in accordance with generally accepted government auditing standards. (2) Not later than 3 years after the date of enactment of this subsection, and every 6 years thereafter, the Federal agencies designated under paragraph (1) shall complete a Government-wide analysis of single audit quality. (3) The Director shall submit to the Committee on Homeland Security and Governmental Affairs of the Senate and the Committee on Oversight and Accountability of the House of Representatives and make publicly available a summary of the results of each review under paragraph (2). (f) Not later than 2 years after the date of enactment of this subsection— (1) the Administrator of General Services, in coordination with the Director, the Council on Federal Financial Assistance (or any successor thereto), and key management single audit liaisons of Federal agencies designated as described in section 200.513 of title 2, Code of Federal Regulations (or any successor thereto), shall develop analytic tools to use audit data in the Federal clearinghouse to identify cross-Governmental risks to Federal award funds; and (2) the Director, in coordination with the Administrator of General Services, the Council on Federal Financial Assistance (or any successor thereto), and key management single audit liaisons of Federal agencies designated as described in section 200.513 of title 2, Code of Federal Regulations (or any successor thereto), shall develop a strategy to use audit data in the Federal clearinghouse to identify cross-Governmental risks to Federal award funds. (g) Not later than 4 years after the date of enactment of this subsection, the Comptroller General of the United States shall complete an evaluation of— (1) the effectiveness of the strategy and analytic tools developed under subsection (f); (2) reporting burdens for auditors and audited entities and the capacity of auditors and audited entities to fulfill the requirements under this chapter; and (3) the responsiveness of Federal agencies to repeat single audit findings and corrective action plans. . 3. No additional funds No additional funds are authorized to be appropriated to carry out this Act or the amendments made by this Act.

September 19, 2024 Reported with an amendment

tv_txt: II 118th CONGRESS 2d Session S. 4716 IN THE SENATE OF THE UNITED STATES July 11 (legislative day, July 10), 2024 Mr. Peters (for himself and Mr. Johnson ) introduced the following bill; which was read twice and referred to the Committee on Homeland Security and Governmental Affairs A BILL To amend section 7504 of title 31, United States Code, to improve the single audit requirements.

1. Short title This Act may be cited as the Financial Management Risk Reduction Act . 2. Single audit improvements Section 7504 of title 31, United States Code, is amended— (1) in subsection (a)— (A) in paragraph (1), by striking , and and inserting a semicolon; (B) in paragraph (2), by striking the period at the end and inserting a semicolon; and (C) by adding at the end the following: (3) participate in and furnish information for the review under subsection (d); and (4) identify, in coordination with the Federal clearinghouse, recipients that expend $300,000 or more in Federal awards or such other amount specified by the Director under section 7502(a)(3) during the recipient's fiscal year but did not undergo an audit in accordance with this chapter. ; (2) in subsection (c)— (A) in paragraph (1), by adding and at the end; (B) by striking paragraph (2); and (C) by redesignating paragraph (3) as paragraph (2); and (3) by adding at the end the following: (d) Not later than 2 years after the date of enactment of this subsection, and every 2 years thereafter, the Director submit to the Committee on Homeland Security and Governmental Affairs of the Senate and the Committee on Oversight and Accountability of the House of Representatives a report listing the recipients identified under subsection (a) (4). (e) (1) The Director shall designate 1 or more Federal agencies to conduct a Government-wide analysis of single audit quality, which may include a consideration of the results of ongoing reviews of single audit quality by— (A) Federal agencies; (B) State auditors; and (C) independent peer review programs. (2) Not later than 3 years after the date of enactment of this subsection, and every 6 years thereafter, the Federal agencies designated under paragraph (1) shall complete a Government-wide analysis of single audit quality, which shall include the views of non-Federal entities regarding single audit quality. (3) The Director shall submit to the Committee on Homeland Security and Governmental Affairs of the Senate and the Committee on Oversight and Accountability of the House of Representatives and make publicly available the results of each review under paragraph (2). (f) Not later than 2 years after the date of enactment of this subsection— (1) the Administrator of General Services, in coordination with the Director, the Council on Federal Financial Assistance (or any successor thereto), and key management single audit liaisons of Federal agencies designated as described in section 200.513 of title 2, Code of Federal Regulations (or any successor thereto), shall develop analytic tools to use audit data in the Federal clearinghouse to identify cross-Governmental risks to Federal award funds; and (2) the Director, in coordination with the Administrator of General Services, the Council on Federal Financial Assistance (or any successor thereto), and key management single audit liaisons of Federal agencies designated as described in section 200.513 of title 2, Code of Federal Regulations (or any successor thereto), shall develop a strategy to use audit data in the Federal clearinghouse to identify cross-Governmental risks to Federal award funds. (g) Not later than 4 years after the date of enactment of this subsection, the Comptroller General of the United States shall complete an evaluation of— (1) the effectiveness of the strategy and analytic tools developed under subsection (f); (2) reporting burdens for auditors and audited entities and the capacity of auditors and audited entities to fulfill the requirements under this chapter; and (3) the responsiveness of Federal agencies to repeat single audit findings and corrective action plans. .