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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 2924 Introduced in Senate (IS)]
<DOC>
118th CONGRESS
1st Session
S. 2924
To amend title 31, United States Code, to improve the management of
improper payments, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
September 26 (legislative day, September 22), 2023
Mr. Carper (for himself and Mr. Braun) introduced the following bill;
which was read twice and referred to the Committee on Homeland Security
and Governmental Affairs
_______________________________________________________________________
A BILL
To amend title 31, United States Code, to improve the management of
improper payments, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Safeguarding the Transparency and
Efficiency of Payments Act'' or the ``STEP Act''.
SEC. 2. IMPROPER PAYMENTS.
(a) Definitions.--
(1) In general.--Section 3351 of title 31, United States
Code, is amended--
(A) by redesignating paragraphs (2) through (8) as
paragraphs (3) through (9), respectively;
(B) by inserting after paragraph (1) the following:
``(2) Chief financial officer.--The term `chief financial
officer' means--
``(A) with respect to an executive agency described
in section 901(b), the Chief Financial Officer of the
executive agency appointed under such section; and
``(B) with respect to an executive agency that is
not described in section 901(b), the official serving
as the senior executive responsible for managing the
financial activities of the executive agency.''; and
(C) in paragraph (3), as so redesignated--
(i) in subparagraph (A)--
(I) in clause (i)--
(aa) by striking
``published'' and inserting
``included''; and
(bb) by striking ``with''
and inserting ``in the document
containing''; and
(II) in clause (ii), by striking
``statement'' and inserting
``document'';
(ii) in subparagraph (C), by striking
``accompanying materials to'' and inserting
``document containing;''
(iii) in subparagraph (D), by striking
``accompanying materials to'' and inserting
``document containing''; and
(iv) in subparagraph (E), by striking
``accompanying materials to'' and inserting
``document containing''.
(2) Conforming amendments.--Section 3353(a)(4)(B) of title
31, United States Code, is amended--
(A) in clause (i), by striking ``section
3351(2)(B)'' and inserting ``section 3351(3)(B)'';
(B) in clause (ii), by striking ``section
3351(2)(C)'' and inserting ``section 3351(3)(C)'';
(C) in clause (iii), by striking ``section
3351(2)(D)'' and inserting ``section 3351(3)(D)''; and
(D) in clause (vi), by striking ``section
3351(2)(A)'' and inserting ``section 3351(3)(A)''.
(b) Estimates of Improper Payments and Reports on Actions To Reduce
Improper Payments.--Section 3352 of title 31, United States Code, is
amended--
(1) in subsection (a)--
(A) in paragraph (3)--
(i) in subparagraph (B), in the matter
preceding clause (i), by striking ``paragraph
(1)'' and inserting ``paragraph (1)(B)''; and
(ii) in subparagraph (C), by striking
``paragraph (1)'' and inserting ``paragraphs
(1) and (4)''; and
(B) by adding at the end the following:
``(4) New programs and activities.--In addition to the
programs and activities identified under paragraph (1)(B), the
head of an executive agency shall annually identify as
susceptible to significant improper payments any program or
activity that--
``(A) has or is expected to have outlays exceeding
$100,000,000 in any one of the first 3 fiscal years of
operation; and
``(B) is in the first 4 years of operation.'';
(2) in subsection (c)(1)--
(A) in the matter preceding subparagraph (A), by
striking ``subsection (a)(1)'' and inserting
``paragraph (1) or (4) of subsection (a)''; and
(B) by striking subparagraphs (A) and (B) and
inserting the following:
``(A) produce a statistically valid estimate of the
improper payments made under the program or activity,
or an estimate of such improper payments that is
otherwise appropriate using a methodology approved by--
``(i) the Director of the Office of
Management and Budget; and
``(ii) the chief financial officer of the
executive agency; and
``(B) report the estimates described in
subparagraph (A) in accordance with subsection (j).'';
and
(3) by adding at the end the following:
``(j) Annual Reports.--Any annual report required to be made by the
head of an executive agency under this section shall--
``(1) be included in full in the document containing the
annual financial statement of the executive agency; and
``(2) include a statement by the chief financial officer of
the executive agency--
``(A) certifying--
``(i) the reliability of the executive
agency's identification of programs and
activities that may be susceptible to
significant improper payments under subsection
(a); and
``(ii) the validity of each estimate of
improper payments under subsection (c); and
``(B) 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 (d).''.
(c) Financial and Administrative Controls Relating to Fraud and
Improper Payments.--Section 3357 of title 31, United States Code, is
amended by striking subsection (d) and inserting the following:
``(d) Reports.--For each fiscal year beginning in the first fiscal
year after the date of enactment of the Safeguarding the Transparency
and Efficiency of Payments Act, and in each of the following 9 fiscal
years, the head of each agency shall submit to Congress, in the report
containing the annual financial statement of the agency, a report--
``(1) on the progress of the agency in--
``(A) implementing--
``(i) the financial and administrative
controls required to be established under
subsection (c)(1);
``(ii) the fraud risk principles in the
Standards for Internal Control in the Federal
Government of the Government Accountability
Office; and
``(iii) Circular A-123 of the Office of
Management and Budget 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; and
``(2) that includes, as defined by the leading practices
identified in the report published by the Government
Accountability Office on July 28, 2015, entitled `Framework for
Managing Fraud Risks in Federal Programs'--
``(A) an identification of--
``(i) each dedicated entity that leads the
fraud risk management activities of the agency
and the roles of each such entity;
``(ii) the responsibilities of each entity
described in clause (i);
``(iii) each program and operation of the
agency for which each entity described in
clause (i) is responsible;
``(iv) the capacity of the entity described
in clause (i), including any limitations, to
strategically manage the fraud risks of the
agency;
``(v) any program or operation of the
agency for which there is not a dedicated
entity that leads fraud risk management
activities; and
``(vi) if applicable, a detailed
justification for not having a dedicated
entity, as described in clause (v);
``(B) the status of the fraud risk profiles for
each program and operation of the agency, including the
date of the last update and date of the next planned
update of those fraud risk profiles;
``(C) with respect to each program or operation of
the agency for which there is not a fraud risk profile,
an identification of that program or operation and a
detailed justification for not having a fraud risk
profile for the program or operation;
``(D) the status of the antifraud strategies for
each program and operation of the agency, including the
date of the last update and the date of the next
planned update of those antifraud strategies; and
``(E) with respect to each program or operation of
the agency for which there is not an antifraud
strategy, an identification of that program or
operation and a detailed justification for not having
an antifraud strategy for the program or operation.''.
<all>
Introduced in Senate
Read twice and referred to the Committee on Homeland Security and Governmental Affairs.
Committee on Homeland Security and Governmental Affairs. Ordered to be reported with an amendment in the nature of a substitute favorably.
Committee on Homeland Security and Governmental Affairs. Reported by Senator Peters with an amendment in the nature of a substitute and an amendment to the title. With written report No. 118-288.
Committee on Homeland Security and Governmental Affairs. Reported by Senator Peters with an amendment in the nature of a substitute and an amendment to the title. With written report No. 118-288.
Placed on Senate Legislative Calendar under General Orders. Calendar No. 694.
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