,,ii  #aah? ,,congress  #a/ ,session    
,s4 #bibd  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,septemb] #bf          
7legislative day1 ,septemb] #bb71       
#bjbc,mr4 ,c>p] 7= himself & ,mr4       
,braun7 introduc$ ! foll[+ bill2 :i* 0  
read twice & ref]r$ to ! ,committee on  
,homel& ,security & ,gov]nm5tal ,affairs
  ,a ,,bill  ,to am5d title #ca1 ,unit$ 
,/ates ,code1 to improve ! managem5t (  
improp] paym5ts1 & = o!r purposes4  #a4 
,%ort title ,?is ,act may be cit$ z !   
,safegu>d+ ! ,transp>5cy & ,effici5cy ( 
,paym5ts ,act or ! ,,/ep ,act4  #b4     
,improp] paym5ts  7a7 ,def9itions  7#a7 
,9 g5]al ,section #ccea ( title #ca1    
,unit$ ,/ates ,code1 is am5d$-- 7,a7 by 
r$esignat+ p>agraphs 7#b7 ?r\gh 7#h7 z  
p>agraphs 7#c7 ?r\gh 7#i71 respectively2
  7,b7 by ins]t+ aft] p>agraph 7#a7 !   
foll[+3  7#b7 ,*ief f9ancial (fic] ,!   
t]m *ief f9ancial (fic] means-- 7,a7 )  
respect to an executive ag5cy describ$ 9
 section #ija7;b71 ! ,*ief ,f9ancial    
,(fic] ( ! executive ag5cy appo9t$ "u   

su* section2 &  7,b7 ) respect to an    
executive ag5cy t is n describ$ 9       
section #ija7;b71 ! (ficial s]v+ z !    
s5ior executive responsible = manag+ !  
f9ancial activities ( ! executive ag5cy4
  2 &  7,c7 9 p>agraph 7#c71 z s        
r$esignat$-- 7i7 9 subp>agraph 7,a7--   
7,i7 9 clause 7i7-- 7aa7 by /rik+       
publi%$ & ins]t+ includ$2 &  7bb7 by    
/rik+ ) & ins]t+ 9 ! docum5t conta9+2 & 
7,,ii7 9 clause 7ii71 by /rik+ /atem5t &
 ins]t+ docum5t2  7ii7 9 subp>agraph    
7,c71 by /rik+ accompany+ mat]ials to & 
ins]t+ docum5t conta9+2  7iii7 9        
subp>agraph 7,d71 by /rik+ accompany+   
mat]ials to & ins]t+ docum5t conta9+2 & 
7iv7 9 subp>agraph 7,e71 by /rik+       
accompany+ mat]ials to & ins]t+ docum5t 
conta9+4  7#b7 ,con=m+ am5dm5ts ,section
 #ccec7;a77#d77;,b7 ( title #ca1 ,unit$ 
,/ates ,code1 is am5d$-- 7,a7 9 clause  
7i71 by /rik+ section #ccea7b77;,b7 &   
ins]t+ section #ccea7c77;,b72  7,b7 9   
clause 7ii71 by /rik+ section           
#ccea7b77;,c7 & ins]t+ section          

#ccea7c77;,c72  7,c7 9 clause 7iii71 by 
/rik+ section #ccea7b77;,d7 & ins]t+    
section #ccea7c77;,d72 &  7,d7 9 clause 
7vi71 by /rik+ section #ccea7b77;,a7 &  
ins]t+ section #ccea7c77;,a74  7b7      
,e/imates ( improp] paym5ts & reports on
 actions ,to r$uce improp] paym5ts      
,section #cceb ( title #ca1 ,unit$      
,/ates ,code1 is am5d$-- 7#a7 9         
subsection 7a7-- 7,a7 9 p>agraph 7#c7-- 
7i7 9 subp>agraph 7,b71 9 ! matt] prec$+
 clause 7i71 by /rik+ p>agraph 7#a7 &   
ins]t+ p>agraph 7#a77;,b72 &  7ii7 9    
subp>agraph 7,c71 by /rik+ p>agraph 7#a7
 & ins]t+ p>agraphs 7#a7 & 7#d72 &  7,b7
 by add+ at ! end ! foll[+3  7#d7 ,new  
programs & activities ,9 addition to !  
programs & activities id5tifi$ "u       
p>agraph 7#a77;,b71 ! head ( an         
executive ag5cy %all annually id5tify z 
susceptible to significant improp]      
paym5ts any program or activity t-- 7,a7
 has or is expect$ to h outlays exce$+  
#ajj1jjj1jjj 9 any "o ( ! fir/ #c fiscal
 ye>s ( op]ation2 &  7,b7 is 9 ! fir/ #d

 ye>s ( op]ation4  2  7#b7 9 subsection 
7c77#a7-- 7,a7 9 ! matt] prec$+         
subp>agraph 7,a71 by /rik+ subsection   
7a77#a7 & ins]t+ p>agraph 7#a7 or 7#d7 (
 subsection 7a72 &  7,b7 by /rik+       
subp>agraphs 7,a7 & 7,b7 & ins]t+ !     
foll[+3  7,a7 produce a /ati/ically     
valid e/imate ( ! improp] paym5ts made  
"u ! program or activity1 or an e/imate 
( su* improp] paym5ts t is o!rwise      
appropriate us+ a me?odology approv$    
by-- 7i7 ! ,director ( ! ,(fice (       
,managem5t & ,budget2 &  7ii7 ! *ief    
f9ancial (fic] ( ! executive ag5cy2 &   
7,b7 report ! e/imates describ$ 9       
subp>agraph 7,a7 9 accordance )         
subsection 7j74  2 &  7#c7 by add+ at ! 
end ! foll[+3  7j7 ,annual reports ,any 
annual report requir$ to be made by !   
head ( an executive ag5cy "u ?is section
 %all-- 7#a7 be includ$ 9 full 9 !      
docum5t conta9+ ! annual f9ancial       
/atem5t ( ! executive ag5cy2 &  7#b7    
include a /atem5t by ! *ief f9ancial    
(fic] ( ! executive ag5cy-- 7,a7        

c]tify+-- 7i7 ! reliability ( !         
executive ag5cy's id5tification (       
programs & activities t may be          
susceptible to significant improp]      
paym5ts "u subsection 7a72 &  7ii7 !    
validity ( ea* e/imate ( improp] paym5ts
 "u subsection 7c72 &  7,b7 describ+ !  
actions ( ! *ief f9ancial (fic] ( !     
executive ag5cy to monitor ! developm5t 
& implem5tation ( any corrective action 
plans report$ "u subsection 7d74  4  7c7
 ,f9ancial & adm9i/rative controls      
relat+ to fraud & improp] paym5ts       
,section #cceg ( title #ca1 ,unit$      
,/ates ,code1 is am5d$ by /rik+         
subsection 7d7 & ins]t+ ! foll[+3  7d7  
,reports ,= ea* fiscal ye> beg9n+ 9 !   
fir/ fiscal ye> aft] ! date ( enactm5t (
 ! ,safegu>d+ ! ,transp>5cy & ,effici5cy
 ( ,paym5ts ,act1 & 9 ea* ( ! foll[+ #i 
fiscal ye>s1 ! head ( ea* ag5cy %all    
submit to ,congress1 9 ! report conta9+ 
! annual f9ancial /atem5t ( ! ag5cy1 a  
report-- 7#a7 on ! progress ( ! ag5cy   
9-- 7,a7 implem5t+-- 7i7 ! f9ancial &   

adm9i/rative controls requir$ to be     
e/abli%$ "u subsection 7c77#a72  7ii7 ! 
fraud risk pr9ciples 9 ! ,/&>ds =       
,int]nal ,control 9 ! ,f$]al ,gov]nm5t (
 ! ,gov]nm5t ,acc\ntability ,(fice2 &   
7iii7 ,circul> ,a-#abc ( ! ,(fice (     
,managem5t & ,budget ) respect to !     
lead+ practices = manag+ fraud risk2    
7,b7 id5tify+ fraud risks &             
vuln]abilities1 includ+ ) respect to    
payroll1 b5efici>y paym5ts1 grants1 l>ge
 contracts1 & pur*ase & travel c>ds2 &  
7,c7 e/abli%+ /rategies1 proc$ures1 &   
o!r /eps to curb fraud2 &  7#b7 t       
includes1 z def9$ by ! lead+ practices  
id5tifi$ 9 ! report publi%$ by !        
,gov]nm5t ,acc\ntability ,(fice on ,july
 #bh1 #bjae1 entitl$ ,framework =       
,manag+ ,fraud ,risks 9 ,f$]al          
,programs-- 7,a7 an id5tification (--   
7i7 ea* d$icat$ entity t leads ! fraud  
risk managem5t activities ( ! ag5cy & ! 
roles ( ea* su* entity2  7ii7 !         
responsibilities ( ea* entity describ$ 9
 clause 7i72  7iii7 ea* program &       

op]ation ( ! ag5cy = :i* ea* entity     
describ$ 9 clause 7i7 is responsible2   
7iv7 ! capacity ( ! entity describ$ 9   
clause 7i71 includ+ any limitations1 to 
/rategically manage ! fraud risks ( !   
ag5cy2  7v7 any program or op]ation ( ! 
ag5cy = :i* !re is n a d$icat$ entity t 
leads fraud risk managem5t activities2 &
  7vi7 if applicable1 a detail$         
ju/ification = n hav+ a d$icat$ entity1 
z describ$ 9 clause 7v72  7,b7 ! /atus (
 ! fraud risk pr(iles = ea* program &   
op]ation ( ! ag5cy1 includ+ ! date ( !  
la/ update & date ( ! next plann$ update
 ( ^? fraud risk pr(iles2  7,c7 )       
respect to ea* program or op]ation ( !  
ag5cy = :i* !re is n a fraud risk       
pr(ile1 an id5tification ( t program or 
op]ation & a detail$ ju/ification = n   
hav+ a fraud risk pr(ile = ! program or 
op]ation2  7,d7 ! /atus ( ! antifraud   
/rategies = ea* program & op]ation ( !  
ag5cy1 includ+ ! date ( ! la/ update & !
 date ( ! next plann$ update ( ^?       
antifraud /rategies2 &  7,e7 ) respect  

to ea* program or op]ation ( ! ag5cy =  
:i* !re is n an antifraud /rategy1 an   
id5tification ( t program or op]ation & 
a detail$ ju/ification = n hav+ an      
antifraud /rategy = ! program or        
op]ation4  4