§3357 — Title 31 Money and Finance | U.S. Code

Summary

Keeps the fraud-prevention rules from the Fraud Reduction and Data Analytics Act of 2015 in force and lets the Director of the Office of Management and Budget, with the Comptroller General, update them when needed. The rules must have agencies check fraud risks and use a risk-based approach to set up controls, collect and analyze fraud reports to spot trends and improve protections, and use monitoring, audits, and investigations to improve prevention, detection, and response. For fiscal years 2019 and 2020, each agency must include in its annual financial report a report to Congress showing how it put those controls in place, how it followed the GAO “Green Book” fraud risk principle and OMB Circular A-123 practices, what fraud risks it found (for example payroll, beneficiary payments, grants, big contracts, and purchase or travel cards), and what steps it took to reduce fraud. Agency: has the meaning in section 551 of title 5.

Title 31, §3357

Money and Finance — Source: USLM XML via OLRC

(a)In this section, the term “agency” has the meaning given the term in section 551 of title 5.

(b)The guidelines required to be established under section 3(a) of the Fraud Reduction and Data Analytics Act of 2015, as in effect on the day before the date of enactment of this section—

(1)shall continue to be in effect on and after the date of enactment of this section; and

(2)may be periodically modified by the Director of the Office of Management and Budget, in consultation with the Comptroller General of the United States, as the Director and Comptroller General may determine necessary.

(c)The guidelines described in subsection (b) shall include—

(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 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.

(d)For each of fiscal years 2019 and 2020, each agency shall submit to Congress, as part of the annual financial report of the agency, a report of the agency on—

(1)implementing—

(A)the financial and administrative controls described in subsection (b);

(B)the fraud risk principle in the Standards for Internal Control in the Federal Government published by the Government Accountability Office (commonly known as the “Green Book”); and

(C)Office of Management and Budget Circular A–123, or any successor thereto, with respect to the leading practices for managing fraud risk;

(2)identifying risks and vulnerabilities to fraud, including with respect to payroll, beneficiary payments, grants, large contracts, and purchase and travel cards; and

(3)establishing strategies, procedures, and other steps to curb fraud.

Notes & Related Subsidiaries

Editorial Notes

References in Text

section 3(a) of the Fraud Reduction and Data Analytics Act of 2015, referred to in subsec. (b), is section 3(a) of Pub. L. 114–186, June 30, 2016, 130 Stat. 546, which was formerly set out in a note under section 3321 of this title, prior to repeal by Pub. L. 116–117, § 3(a)(4), Mar. 2, 2020, 134 Stat. 133. The date of enactment of this section, referred to in subsec. (b), is the date of enactment of Pub. L. 116–117, which was approved Mar. 2, 2020.

§3357 Financial and administrative controls relating to fraud and improper payments

Summary

Title 31, §3357

Notes & Related Subsidiaries

Editorial Notes

References in Text

Citations & Metadata