,,ii  #aadth ,,congress  #ast ,session  
,s4 #bacc  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,october #e1   
#bjae ,mr4 ,reid 7for ,mr4 ,carper 7for 
himself1 ,mr4 ,tillis1 ,mrs4            
,mc,caskill1 ,mr4 ,johnson1 and ,ms4    
,baldwin77 introduced the following     
bill2 which was read twice and referred 
to the ,committee on ,homeland ,security
 and ,governmental ,affairs  ,a ,,bill  
,to improve ,federal agency financial   
and administrative controls and         
procedures to assess and mitigate fraud 
risks1 and to improve ,federal agencies'
 development and use of data analytics  
for the purpose of identifying1         
preventing1 and responding to fraud1    
including improper payments4  #a4 ,short
 title  ,this ,act may be cited as the  
,fraud ,reduction and ,data ,analytics  
,act of #bjae4  #b4 ,definitions ,in    
this ,act-- 7#a7 the term agency has the
 meaning given the term in section #eea 
of title #e1 ,united ,states ,code2 and 
7#b7 the term improper payment has the  

meaning given the term in section #b7;g7
 of the ,improper ,payments ,information
 ,act of #bjjb 7#ca ,u4,s4,c4 #ccba     
note74  #c4 ,establishment of financial 
and administrative controls relating to 
fraud and improper payments  7a7        
,guidelines  7#a7 ,in general ,not later
 than #ij days after the date of        
enactment of this ,act1 the ,director of
 the ,office of ,management and ,budget1
 in consultation with the ,comptroller  
,general of the ,united ,states1 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 prevent1 detect1 
and respond to fraud1 including improper
 payments4  7#b7 ,contents ,the         
guidelines described in paragraph 7#a7  
shall incorporate the leading practices 
identified in the report published by   
the ,government ,accountability ,office 
on ,july #bh1 #bjae1 entitled ,framework
 for ,managing ,fraud ,risks in ,federal

 ,programs4  7#c7 ,modification ,the    
,director of the ,office of ,management 
and ,budget1 in consultation with the   
,comptroller ,general of the ,united    
,states1 may periodically modify the    
guidelines described in paragraph 7#a7  
as the ,director and ,comptroller       
,general may determine necessary4  7b7  
,requirements for controls ,the         
financial and administrative controls   
required to be established by agencies  
under subsection 7a7 shall include--    
7#a7 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 risks2  7#b7  
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 controls2 and  
7#c7 using the results of monitoring1   
evaluation1 audits1 and investigations  
to improve fraud prevention1 detection1 

and response4  7c7 ,reports  7#a7 ,in   
general ,except as provided in paragraph
 7#b71 for each of the first #c fiscal  
years beginning after the date of       
enactment of this ,act1 each agency     
shall submit to ,congress1 as part of   
the annual financial report of the      
agency1 a report on the progress of the 
agency in--  7,a7 implementing-- 7i7 the
 financial and administrative controls  
required to be established under        
subsection 7a72  7ii7 the fraud risk    
principle in the ,standards for         
,internal ,control in the ,federal      
,government2 and  7iii7 ,office of      
,management and ,budget ,circular       
,a-#abc with respect to the leading     
practices for managing fraud risk2  7,b7
 identifying risks and vulnerabilities  
to fraud1 including with respect to     
payroll1 beneficiary payments1 grants1  
large contracts1 and purchase and travel
 cards2 and  7,c7 establishing          
strategies1 procedures1 and other steps 
to curb fraud4  7#b7 ,first report ,if  

the date of enactment of this ,act is   
less than #ahj days before the date on  
which an agency is required to submit   
the annual financial report of the      
agency1 the agency may submit the report
 required under paragraph 7#a7 as part  
of the following annual financial report
 of the agency4  #d4 ,working group  7a7
 ,establishment ,not later than #ahj    
days after the date of enactment of this
 ,act1 the ,office of ,management and   
,budget shall establish a working group 
to improve--  7#a7 the sharing of       
financial and administrative controls   
established under section #c7;a7 and    
other best practices and techniques for 
detecting1 preventing1 and responding to
 fraud1 including improper payments2 and
  7#b7 the sharing and development of   
data analytics techniques4  7b7         
,composition ,the working group         
established under subsection 7a7 shall  
be composed of--  7#a7 the ,controller  
of the ,office of ,management and       
,budget1 who shall serve as             

,chairperson2 and  7#b7 the ,chief      
,financial ,officer of each agency4  7c7
 ,consultation ,the working group       
established under subsection 7a7 shall  
consult with ,offices of ,inspectors    
,general and ,federal and non-,federal  
experts on fraud risk assessments1      
financial controls1 and other relevant  
matters4  7d7 ,meetings ,the working    
group established under subsection 7a7  
shall hold not fewer than #d meetings   
per year4  7e7 ,plan ,not later than    
#bgj days after the date of enactment of
 this ,act1 the working group           
established under subsection 7a7 shall  
submit to ,congress a plan for the      
establishment and use of a ,federal     
interagency library of data analytics   
and data sets1 which can incorporate or 
improve upon existing ,federal resources
 and capacities1 for use by agencies and
 ,offices of ,inspectors ,general to    
facilitate the detection1 prevention1   
and recovery of fraud1 including        
improper payments4