,,ii #aaith ,,congress #ast ,session ,s4 #hj ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,january #ac1 #bjbe,mr4 ,lankford introduced the following bill2 which was read twice and referred to the ,committee on ,homeland ,security and ,governmental ,affairs ,a ,,bill ,to amend title #ca1 ,united ,states ,code1 to improve the prevention of improper payments1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,safeguarding the ,transparency and ,efficiency of ,payments ,act or the ,,step ,act4 #b4 ,improper payments 7a7 ,definitions 7#a7 ,in general ,section #ccea of title #ca1 ,united ,states ,code1 is amended-- 7,a7 by redesignating paragraphs 7#b7 through 7#h7 as paragraphs 7#c7 through 7#i71 respectively2 and 7,b7 by inserting after paragraph 7#a7 the following3 7#b7 ,chief financial officer ,the term chief financial officer means-- 7,a7 with respect to an executive agency described in section #ija7;b71 the ,chief ,financial ,officer of the executive agency appointed under such section2 and 7,b7 with respect to an executive agency that is not described in section #ija7;b71 the official serving as the senior executive responsible for managing the financial activities of the executive agency4 4 7#b7 ,conforming amendments ,section #ccec7;a77#d77;,b7 of title #ca1 ,united ,states ,code1 is amended-- 7,a7 in clause 7i71 by striking section #ccea7b77;,b7 and inserting section #ccea7c77;,b72 7,b7 in clause 7ii71 by striking section #ccea7b77;,c7 and inserting section #ccea7c77;,c72 7,c7 in clause 7iii71 by striking section #ccea7b77;,d7 and inserting section #ccea7c77;,d72 and 7,d7 in clause 7vi71 by striking section #ccea7b77;,a7 and inserting section #ccea7c77;,a74 7b7 ,estimates of improper payments and reports on actions ,to reduce improper payments ,section #cceb of title #ca1 ,united ,states ,code1 is amended-- 7#a7 in subsection 7a7-- 7,a7 in paragraph 7#c7-- 7i7 in subparagraph 7,b71 in the matter preceding clause 7i71 by striking paragraph 7#a7 and inserting paragraph 7#a77;,b72 and 7ii7 in subparagraph 7,c71 by striking paragraph 7#a7 each place it appears and inserting paragraphs 7#a7 and 7#d72 and 7,b7 by adding at the end the following3 7#d7 ,new programs and activities ,in addition to the programs and activities identified under paragraph 7#a77;,b7 and subject to paragraph 7#e71 the head of an executive agency shall annually identify as susceptible to significant improper payments any program or activity that-- 7,a7 has or is expected to have outlays exceeding #ajj1jjj1jjj in any one of the first #c fiscal years of operation2 and 7,b7 is in the first #d years of operation4 7#e7 ,exception ,paragraph 7#d7 shall not apply with respect to any program or activity that the head of the relevant executive agency concludes1 based on the results of a review conducted under paragraph 7#a71 is not susceptible to significant improper payments4 2 7#b7 in subsection 7c77#a7-- 7,a7 in the matter preceding subparagraph 7,a71 by striking subsection 7a77#a7 and inserting paragraph 7#a7 or 7#d7 of subsection 7a72 and 7,b7 by striking subparagraphs 7,a7 and 7,b7 and inserting the following3 7,a7 produce a statistically valid estimate of the improper payments made under the program or activity1 or an estimate of such improper payments that is otherwise appropriate using a methodology approved by-- 7i7 the ,director of the ,office of ,management and ,budget2 and 7ii7 the chief financial officer of the executive agency2 and 7,b7 report the estimates described in subparagraph 7,a7 in accordance with subsection 7j74 2 and 7#c7 by adding at the end the following3 7j7 ,annual reports ,any annual report required to be made by the head of an executive agency under this section shall-- 7#a7 be included in the materials accompanying the annual financial statement of the executive agency and1 as required1 in applicable guidance of the ,office of ,management and ,budget2 and 7#b7 include a statement by the chief financial officer of the executive agency-- 7,a7 certifying the reliability of the executive agency's identification of programs and activities that may be susceptible to significant improper payments under subsection 7a72 and 7,b7 describing the actions of the chief financial officer of the executive agency to monitor the development and implementation of any corrective action plans reported under subsection 7d74 4 7c7 ,financial and administrative controls relating to fraud and improper payments ,section #cceg of title #ca1 ,united ,states ,code1 is amended by striking subsection 7d7 and inserting the following3 7d7 ,reports 7#a7 ,in general ,for each fiscal year beginning in the first fiscal year after the date of enactment of the ,safeguarding the ,transparency and ,efficiency of ,payments ,act1 and in each of the following #i fiscal years1 the head of each agency shall submit to ,congress1 in the report containing the annual financial statement of the agency1 a report-- 7,a7 on the progress of the agency in-- 7i7 implementing-- 7,i7 the financial and administrative controls required to be established under subsection 7c77#a72 7,,ii7 the fraud risk principles in the ,standards for ,internal ,control in the ,federal ,government of the ,government ,accountability ,office2 and 7,,iii7 ,circular ,a-#abc of the ,office of ,management and ,budget with respect to the leading practices for managing fraud risk2 7ii7 identifying fraud risks and vulnerabilities1 including with respect to payroll1 beneficiary payments1 grants1 large contracts1 and purchase and travel cards2 and 7iii7 establishing strategies1 procedures1 and other steps to curb fraud2 and 7,b7 that includes information on the status of implementing each of the #aa 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#b7 ,information in report ,if the annual financial statement of an agency1 or an alternative report of the agency included in the annual financial statement1 includes information that fulfills the requirements of this subsection1 the head of the agency may include a brief statement to that effect in the financial statement or alternative report without duplicating the information required under this subsection in a separate or standalone report4 4 #c4 ,no additional funds ,no additional funds are authorized to be appropriated for the purpose of carrying out this ,act or the amendments made by this ,act4