S. 2133, Fraud Reduction and Data Analytics Act of 2015

S. 2133

Fraud Reduction and Data Analytics Act of 2015

Sponsor
Sen. Thomas R. Carper

Committee
Homeland Security and Governmental Affairs

Date
June 21, 2016 (114th Congress, 2nd Session)

Staff Contact
Robert Goad

Floor Situation

On Tuesday, June 21, 2016, the House will consider S. 2133, the Fraud Reduction and Data Analytics Act, under suspension of the rules. The bill was introduced on October 5, 2015, by Sen. Thomas Carper (D-DE) and referred to the Senate Homeland Security and Governmental Affairs Committee, which reported the bill by unanimous consent on March 15, 2016. The Senate passed the bill by unanimous consent on April 12, 2016.

 

Bill Summary

S. 2133 requires the Office of Management and Budget (OMB) to establish guidelines for federal agencies to establish financial and administrative controls to identify and assess fraud risks and design and implement control activities in order to prevent, detect, and respond to fraud, including improper payments.

The guidelines will incorporate the leading practices identified by the Government Accountability Office (GAO) in a report published on July 28, 2015, titled “Framework for Managing Fraud Risks in Federal Programs.”

Background

Fraud in the Federal Government is a serious problem that wastes taxpayer dollars, prevents Federal programs from carrying out their intended purpose and serving target populations, and creates potential national security risks.[1] Congress and Federal agencies have been working to combat fraud and reduce improper payments by creating policies and legislation that will give agencies the tools that they need to target and prevent fraud.

In fiscal year 2014, Federal agencies reported an estimate $124.7 billion in improper payments, which includes payments made as a result of of waste fraud and abuse.[2]

According to the bill sponsor, “We have a responsibility to ensure that federal agencies do a better job managing federal programs and delivering services more efficiently and at a lower cost. This bill would, among other things, require federal officials to determine what areas of government spending re at the greatest risk for fraud, develop an action plan to address vulnerabilities, and then share those solutions across agencies with similar programs.”[3]

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[1] See Senate Report 114-229
[2] See GAO Report, “A Framework for Managing Fraud Risks in Federal Programs
[3] See Senator Carper Responds to Results of Committee Business Meeting

Cost

The Congressional Budget Office (CBO) estimates implementing S. 2133 would cost about $4 million over the 2016-2020 period, including funds to operate the proposed working group.

Additional Information

For questions or further information please contact Robert Goad with the House Republican Policy Committee by email or at 6-1831.