Date: June 29, 2016
House Passes S. 2133,
The Fraud Reduction and Data Analytics Act of 2016
On June 21, 2016, the House passed S. 2133, the Fraud Reduction and Data Analytics Act of 2015, by voice vote under suspension of the rules. The bill would require the Office of Management and Budget (OMB) to provide guidelines for Federal agencies to establish financial and administrative controls to identify and assess fraud risks, and to design and implement control activities in order to prevent, detect, and respond to fraud, including improper payments. The bill previously passed the Senate by unanimous consent on April 12, 2016. The bill will now be sent to the President for signature.
The bill includes the following provisions of interest to SSA:
- Would require agencies to conduct an evaluation of fraud risks, using a risk-based approach, to design and implement financial and administrative control activities to mitigate identified fraud risks;
- Would require agencies to collect and analyze data on detected fraud to monitor fraud trends, and to use this information to continuously improve fraud prevention controls; and
- Would require agencies to use the results of monitoring, evaluating, auditing, and investigating, to improve fraud prevention, detection, and response.
Annual Reporting on Fraud Prevention Activities
Would require each agency to submit as part of its annual financial report a report on its progress in:
- Implementing such financial and administrative controls, the fraud risk principle in the Standards for Internal Control in the Federal Government, and OMB Circular A-123 leading practices for managing fraud risk;
- Identifying risks and vulnerabilities to fraud, including with respect to payroll, beneficiary payments, grants, large contracts, and purchase and travel cards; and
- Establishing strategies, procedures, and other steps to curb fraud.
OMB Working Group
Would require OMB to establish a working group to:
- Improve the sharing of financial and administrative controls and other best practices and techniques for detecting, preventing, and responding to fraud,
- Facilitate the sharing and development of data analytics techniques; and
- Submit a plan for a federal interagency library of data analytics and data sets for use by agencies and Offices of Inspectors General to facilitate the detection, prevention, and recovery of fraud.
Would include as members the Chief Financial Officer of each agency, along with other participants as determined appropriate by OMB.
All provisions would be effective upon enactment.