Enhancing Improper Payment Accountability Act

This Act may be cited as the Enhancing Improper Payment Accountability Act.

Section 1105(a) of title 31, United States Code, is amended by adding at the end the following:

(40) information on Federal programs and activities with respect to which reports on improper payments (as such term is defined in section 3351) are required to be submitted or published under subchapter IV of chapter 33 but have not been so submitted, and a detailed explanation on why such reports were not so submitted and any barriers the agency faces in preparing and filing such reports.

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Section 3352 of title 31, United States Code, is amended—

(1) in subsection (a)—

(A) in paragraph (3)(C)(i), by striking paragraph (1) and inserting in its place paragraphs (1) and (4); and

(B) by adding at the end the following:

In addition to those programs and activities identified under paragraph (a)(1)(B), the head of each executive agency shall annually identify as susceptible to significant improper payments, notwithstanding paragraphs (a)(3)(A) and (a)(3)(B), any program or activity that—

(A) has or is expected to have outlays exceeding $100,000,000 in any one of its first three fiscal years of operation; and

(B) is in its first four years of operation.

(B) ; and

(2) in subsection (c)(1), by striking subsection (a)(1) and inserting in its place subsection (a)(1) or (a)(4).

Section 3357 of title 31, United States Code, is amended by striking subsection (d) and inserting the following:

For each fiscal year beginning in the first fiscal year after the date of the enactment of the Enhancing Improper Payment Accountability Act, each agency shall submit to Congress, in the report containing the annual financial statement 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 (c);

(ii) the fraud risk principles 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 fraud risks and vulnerabilities, 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.

Any report under paragraph (1) shall include, as defined by the leading practices identified in the report published by the Government Accountability Office on July 28, 2015, titled Framework for Managing Fraud Risks in Federal Programs —

(A) identification of—

(i) any dedicated entity that leads the agency’s fraud risk management activities and its roles;

(ii) responsibilities of such entity, including any program or operation for which that entity is responsible;

(iii) capacity, including any limitations, to strategically manage fraud risks; and

(iv) any program or operation for which there is not a dedicated entity that leads fraud risk management activities, along with a detailed justification for not having a dedicated entity;

(B) status of the agency’s fraud risk profiles, including the date of the last update and date of planned update, for all programs and operations, and if there is not a fraud risk profile for a program or operation, a detailed justification for why such program or operation does not have such a profile; and

(C) status of the agency’s antifraud strategies, including the date of last update and date of planned update, for all programs and operations, and if there is not an antifraud strategy for a program or operation, a detailed justification for why such program or operation does not have such a strategy.

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