Accountability of Tax Dollars Act of 2002
PL 107-289 (H.R.4685), enacted 11/07/2002

PUBLIC LAW 107-289—NOV. 7, 2002 
116 STAT. 2049 
Public Law 107-289 
107th Congress 
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 "Accountabihty 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'— 
Nov. 7, 2002 
[H.R. 4685] 
Accountability of 
Tax Dollars Act 
of 2002. 
31 u s e 3501 
note. 
Notification. 
116 STAT. 2050 
PUBLIC LAW 107-289—NOV. 7, 2002 
"(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.". 
31 use 3515 
(b) WAIVER AUTHORITY.— 
note. 
(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. 
Approved November 7, 2002. 
LEGISLATIVE HISTORY—H.R. 4685 (S. 2644): 
SENATE REPORTS: No. 107-331 accompanying S. 2644 (Comm. on Governmental 
Affairs). 
CONGRESSIONAL RECORD, Vol. 148 (2002): 
Oct. 7, considered and passed House. 
Oct. 17, considered and passed Senate. 
WEEICLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 38 (2002): 
Nov. 7, Presidential statements.