Fraud Reduction and Data Analytics Act of 2015
PL 114-186 (S.2133), enacted 06/30/2016

130 STAT. 546 
PUBLIC LAW 114–186—JUNE 30, 2016 
Public Law 114–186 
114th Congress 
An Act 
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. 
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 ‘‘Fraud Reduction and Data 
Analytics Act of 2015’’. 
SEC. 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). 
SEC. 3. ESTABLISHMENT OF FINANCIAL AND ADMINISTRATIVE CON-
TROLS 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 Manage-
ment 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 activi-
ties 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 Manage-
ment 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 adminis-
trative controls required to be established by agencies under sub-
section (a) shall include— 
Consultation. 
Deadline. 
Consultation. 
Fraud Reduction 
and Data 
Analytics Act 
of 2015. 
31 USC 3321 
note. 
June 30, 2016 
[S. 2133] 
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130 STAT. 547 
PUBLIC LAW 114–186—JUNE 30, 2016 
(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 mecha-
nisms 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 man-
aging 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. 
SEC. 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 tech-
niques. 
(b) COMPOSITION.—The working group established under sub-
section (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. 
Deadline. 
Time periods. 
Evaluation. 
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130 STAT. 548 
PUBLIC LAW 114–186—JUNE 30, 2016 
LEGISLATIVE HISTORY—S. 2133 (H.R. 4180): 
HOUSE REPORTS: No. 114–419 (Comm. on Oversight and Government Reform) 
accompanying H.R. 4180. 
SENATE REPORTS: No. 114–229 (Comm. on Homeland Security and Governmental 
Affairs). 
CONGRESSIONAL RECORD, Vol. 162 (2016): 
Apr. 12, considered and passed Senate. 
June 21, considered and passed House. 
(c) CONSULTATION.—The working group established under sub-
section (a) shall consult with Offices of Inspectors General and 
Federal and non-Federal experts on fraud risk assessments, finan-
cial controls, and other relevant matters. 
(d) MEETINGS.—The working group established under sub-
section (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. 
Approved June 30, 2016. 
Deadline. 
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