Text: S.2133 — 114th Congress (2015-2016)All Information (Except Text)
Public Law No: 114-186 (06/30/2016)
[114th Congress Public Law 186]
[From the U.S. Government Publishing Office]
FRAUD REDUCTION AND DATA ANALYTICS ACT OF 2015
[[Page 130 STAT. 546]]
Public Law 114-186
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.
(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
(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)
[[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
(3) using the results of monitoring, evaluation, audits, and
investigations to improve fraud prevention, detection, and
(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--
(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;
(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;
(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
(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
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
CONGRESSIONAL RECORD, Vol. 162 (2016):
Apr. 12, considered and passed Senate.
June 21, considered and passed House.