[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 4716 Reported in Senate (RS)]

<DOC>





                                                       Calendar No. 519
118th CONGRESS
  2d Session
                                S. 4716

                          [Report No. 118-226]

 To amend section 7504 of title 31, United States Code, to improve the 
                       single audit requirements.


_______________________________________________________________________


                   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.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

<DELETED>SECTION 1. SHORT TITLE.</DELETED>

<DELETED>    This Act may be cited as the ``Financial Management Risk 
Reduction Act''.</DELETED>

<DELETED>SEC. 2. SINGLE AUDIT IMPROVEMENTS.</DELETED>

<DELETED>    Section 7504 of title 31, United States Code, is amended--
</DELETED>
        <DELETED>    (1) in subsection (a)--</DELETED>
                <DELETED>    (A) in paragraph (1), by striking ``, 
                and'' and inserting a semicolon;</DELETED>
                <DELETED>    (B) in paragraph (2), by striking the 
                period at the end and inserting a semicolon; 
                and</DELETED>
                <DELETED>    (C) by adding at the end the 
                following:</DELETED>
        <DELETED>    ``(3) participate in and furnish information for 
        the review under subsection (d); and</DELETED>
        <DELETED>    ``(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.'';</DELETED>
        <DELETED>    (2) in subsection (c)--</DELETED>
                <DELETED>    (A) in paragraph (1), by adding ``and'' at 
                the end;</DELETED>
                <DELETED>    (B) by striking paragraph (2); 
                and</DELETED>
                <DELETED>    (C) by redesignating paragraph (3) as 
                paragraph (2); and</DELETED>
        <DELETED>    (3) by adding at the end the following:</DELETED>
<DELETED>    ``(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).</DELETED>
<DELETED>    ``(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--</DELETED>
        <DELETED>    ``(A) Federal agencies;</DELETED>
        <DELETED>    ``(B) State auditors; and</DELETED>
        <DELETED>    ``(C) independent peer review programs.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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).</DELETED>
<DELETED>    ``(f) Not later than 2 years after the date of enactment 
of this subsection--</DELETED>
        <DELETED>    ``(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</DELETED>
        <DELETED>    ``(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.</DELETED>
<DELETED>    ``(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--</DELETED>
        <DELETED>    ``(1) the effectiveness of the strategy and 
        analytic tools developed under subsection (f);</DELETED>
        <DELETED>    ``(2) reporting burdens for auditors and audited 
        entities and the capacity of auditors and audited entities to 
        fulfill the requirements under this chapter; and</DELETED>
        <DELETED>    ``(3) the responsiveness of Federal agencies to 
        repeat single audit findings and corrective action 
        plans.''.</DELETED>

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Financial Management Risk Reduction 
Act''.

SEC. 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.''.

SEC. 3. NO ADDITIONAL FUNDS.

    No additional funds are authorized to be appropriated to carry out 
this Act or the amendments made by this Act.
                                                       Calendar No. 519

118th CONGRESS

  2d Session

                                S. 4716

                          [Report No. 118-226]

_______________________________________________________________________

                                 A BILL

 To amend section 7504 of title 31, United States Code, to improve the 
                       single audit requirements.

_______________________________________________________________________

                           September 19, 2024

                       Reported with an amendment