Text: S.2133 — 114th Congress (2015-2016)All Information (Except Text)

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Public Law No: 114-186 (06/30/2016)

 
[114th Congress Public Law 186]
[From the U.S. Government Publishing Office]



[[Page 545]]

             FRAUD REDUCTION AND DATA ANALYTICS ACT OF 2015

[[Page 130 STAT. 546]]

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. <<NOTE: June 30, 2016 -  [S. 2133]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: Fraud Reduction 
and Data Analytics Act of 2015. 31 USC 3321 note.>> 
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 CONTROLS 
                    RELATING TO FRAUD AND IMPROPER PAYMENTS.

    (a) Guidelines.--
            (1) <<NOTE: Deadline. Consultation.>>  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) <<NOTE: Consultation.>>  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--

[[Page 130 STAT. 547]]

            (1) <<NOTE: Evaluation.>>  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) <<NOTE: Time periods.>>  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.
SEC. 4. WORKING GROUP.

    (a) <<NOTE: Deadline.>>  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.

[[Page 130 STAT. 548]]

    (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) <<NOTE: Deadline.>>  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.

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.

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