[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 2924 Reported in Senate (RS)]
<DOC>
Calendar No. 694
118th CONGRESS
2d Session
S. 2924
[Report No. 118-288]
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, Mr. Braun, and Mr. Lankford) introduced the
following bill; which was read twice and referred to the Committee on
Homeland Security and Governmental Affairs
December 12, 2024
Reported by Mr. Peters, with an amendment and an amendment to the title
[Strike out all after the enacting clause and insert the part printed
in italic]
_______________________________________________________________________
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,
<DELETED>SECTION 1. SHORT TITLE.</DELETED>
<DELETED> This Act may be cited as the ``Safeguarding the
Transparency and Efficiency of Payments Act'' or the ``STEP
Act''.</DELETED>
<DELETED>SEC. 2. IMPROPER PAYMENTS.</DELETED>
<DELETED> (a) Definitions.--</DELETED>
<DELETED> (1) In general.--Section 3351 of title 31, United
States Code, is amended--</DELETED>
<DELETED> (A) by redesignating paragraphs (2)
through (8) as paragraphs (3) through (9),
respectively;</DELETED>
<DELETED> (B) by inserting after paragraph (1) the
following:</DELETED>
<DELETED> ``(2) Chief financial officer.--The term `chief
financial officer' means--</DELETED>
<DELETED> ``(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</DELETED>
<DELETED> ``(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</DELETED>
<DELETED> (C) in paragraph (3), as so redesignated--
</DELETED>
<DELETED> (i) in subparagraph (A)--
</DELETED>
<DELETED> (I) in clause (i)--
</DELETED>
<DELETED> (aa) by striking
``published'' and inserting
``included''; and</DELETED>
<DELETED> (bb) by striking
``with'' and inserting ``in the
document containing'';
and</DELETED>
<DELETED> (II) in clause (ii), by
striking ``statement'' and inserting
``document'';</DELETED>
<DELETED> (ii) in subparagraph (C), by
striking ``accompanying materials to'' and
inserting ``document containing;''</DELETED>
<DELETED> (iii) in subparagraph (D), by
striking ``accompanying materials to'' and
inserting ``document containing'';
and</DELETED>
<DELETED> (iv) in subparagraph (E), by
striking ``accompanying materials to'' and
inserting ``document containing''.</DELETED>
<DELETED> (2) Conforming amendments.--Section 3353(a)(4)(B)
of title 31, United States Code, is amended--</DELETED>
<DELETED> (A) in clause (i), by striking ``section
3351(2)(B)'' and inserting ``section
3351(3)(B)'';</DELETED>
<DELETED> (B) in clause (ii), by striking ``section
3351(2)(C)'' and inserting ``section
3351(3)(C)'';</DELETED>
<DELETED> (C) in clause (iii), by striking ``section
3351(2)(D)'' and inserting ``section 3351(3)(D)'';
and</DELETED>
<DELETED> (D) in clause (vi), by striking ``section
3351(2)(A)'' and inserting ``section
3351(3)(A)''.</DELETED>
<DELETED> (b) Estimates of Improper Payments and Reports on Actions
To Reduce Improper Payments.--Section 3352 of title 31, United States
Code, is amended--</DELETED>
<DELETED> (1) in subsection (a)--</DELETED>
<DELETED> (A) in paragraph (3)--</DELETED>
<DELETED> (i) in subparagraph (B), in the
matter preceding clause (i), by striking
``paragraph (1)'' and inserting ``paragraph
(1)(B)''; and</DELETED>
<DELETED> (ii) in subparagraph (C), by
striking ``paragraph (1)'' and inserting
``paragraphs (1) and (4)''; and</DELETED>
<DELETED> (B) by adding at the end the
following:</DELETED>
<DELETED> ``(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--</DELETED>
<DELETED> ``(A) has or is expected to have outlays
exceeding $100,000,000 in any one of the first 3 fiscal
years of operation; and</DELETED>
<DELETED> ``(B) is in the first 4 years of
operation.'';</DELETED>
<DELETED> (2) in subsection (c)(1)--</DELETED>
<DELETED> (A) in the matter preceding subparagraph
(A), by striking ``subsection (a)(1)'' and inserting
``paragraph (1) or (4) of subsection (a)'';
and</DELETED>
<DELETED> (B) by striking subparagraphs (A) and (B)
and inserting the following:</DELETED>
<DELETED> ``(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--</DELETED>
<DELETED> ``(i) the Director of the Office
of Management and Budget; and</DELETED>
<DELETED> ``(ii) the chief financial officer
of the executive agency; and</DELETED>
<DELETED> ``(B) report the estimates described in
subparagraph (A) in accordance with subsection (j).'';
and</DELETED>
<DELETED> (3) by adding at the end the following:</DELETED>
<DELETED> ``(j) Annual Reports.--Any annual report required to be
made by the head of an executive agency under this section shall--
</DELETED>
<DELETED> ``(1) be included in full in the document
containing the annual financial statement of the executive
agency; and</DELETED>
<DELETED> ``(2) include a statement by the chief financial
officer of the executive agency--</DELETED>
<DELETED> ``(A) certifying--</DELETED>
<DELETED> ``(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</DELETED>
<DELETED> ``(ii) the validity of each
estimate of improper payments under subsection
(c); and</DELETED>
<DELETED> ``(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).''.</DELETED>
<DELETED> (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:</DELETED>
<DELETED> ``(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--</DELETED>
<DELETED> ``(1) on the progress of the agency in--</DELETED>
<DELETED> ``(A) implementing--</DELETED>
<DELETED> ``(i) the financial and
administrative controls required to be
established under subsection (c)(1);</DELETED>
<DELETED> ``(ii) the fraud risk principles
in the Standards for Internal Control in the
Federal Government of the Government
Accountability Office; and</DELETED>
<DELETED> ``(iii) Circular A-123 of the
Office of Management and Budget with respect to
the leading practices for managing fraud
risk;</DELETED>
<DELETED> ``(B) identifying fraud risks and
vulnerabilities, including with respect to payroll,
beneficiary payments, grants, large contracts, and
purchase and travel cards; and</DELETED>
<DELETED> ``(C) establishing strategies, procedures,
and other steps to curb fraud; and</DELETED>
<DELETED> ``(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'--</DELETED>
<DELETED> ``(A) an identification of--</DELETED>
<DELETED> ``(i) each dedicated entity that
leads the fraud risk management activities of
the agency and the roles of each such
entity;</DELETED>
<DELETED> ``(ii) the responsibilities of
each entity described in clause (i);</DELETED>
<DELETED> ``(iii) each program and operation
of the agency for which each entity described
in clause (i) is responsible;</DELETED>
<DELETED> ``(iv) the capacity of the entity
described in clause (i), including any
limitations, to strategically manage the fraud
risks of the agency;</DELETED>
<DELETED> ``(v) any program or operation of
the agency for which there is not a dedicated
entity that leads fraud risk management
activities; and</DELETED>
<DELETED> ``(vi) if applicable, a detailed
justification for not having a dedicated
entity, as described in clause (v);</DELETED>
<DELETED> ``(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;</DELETED>
<DELETED> ``(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;</DELETED>
<DELETED> ``(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</DELETED>
<DELETED> ``(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.''.</DELETED>
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; and
(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.''.
(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)'' each place it appears 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) and
subject to paragraph (5), 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.
``(5) Exception.--Paragraph (4) shall not apply with
respect to any program or activity that the head of the
relevant executive agency concludes, based on the results of a
review conducted under paragraph (1), is not susceptible to
significant improper payments.'';
(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 the materials accompanying the annual
financial statement of the executive agency and, as required,
in applicable guidance of the Office of Management and Budget;
and
``(2) include a statement by the chief financial officer of
the executive agency--
``(A) certifying the reliability of the executive
agency's identification of programs and activities that
may be susceptible to significant improper payments
under subsection (a); and