HR8107-119

What This Bill Does

The Government Audit and Accountability of Federally Funded State-Administered Programs Act requires the Comptroller General to create a High Risk List focused on federal funds administered by states and local governments. Within two years after enactment and periodically thereafter, GAO must submit to Congress a list identifying program areas and administrative practices that present the greatest integrity risk for federal pass-through and other state-administered programs. The list must identify systematic vulnerability patterns, assess best practices that strengthened integrity and reduced waste, fraud, and abuse, identify federal tools, resources, and technical assistance available to address those vulnerabilities, and recommend congressional action. GAO must primarily rely on existing publicly available oversight, audit, and investigative materials, including federal and state auditor, inspector general, and attorney general findings, single audit reports under 31 U.S.C. 7502, and other federal oversight and program-integrity data. GAO may supplement those materials with independent analysis of publicly available federal program data, but the bill does not authorize GAO to compel information from states or local governments or conduct independent audits of state or local programs.

Who Benefits and How

Congressional oversight committees benefit from a recurring GAO High Risk List focused on state-administered federal funds. Federal grant integrity officials benefit from GAO synthesis of vulnerability patterns, best practices, tools, and technical assistance. State auditors and inspectors general benefit because their existing findings can inform federal oversight without new federal audit compulsion. Taxpayer watchdog organizations benefit from a public framework for identifying waste, fraud, and abuse risks in pass-through programs. State and local program managers benefit from identified best practices and technical-assistance resources. Federal program offices benefit from recommendations that point Congress toward systemic fixes rather than isolated incidents.

Who Bears the Burden and How

The Comptroller General and GAO analysts must assemble the High Risk List, analyze public oversight materials, apply professional auditing and evaluation standards, identify vulnerability patterns, and prepare recommendations. Congressional committees must review and respond to recommendations. State-administered programs identified as high risk face oversight scrutiny. Federal grant-making agencies may need to provide tools, technical assistance, and program-integrity support. State and local governments may face public criticism if their administrative practices are identified as systematic vulnerabilities. Auditors and inspectors general may see their public findings used in broader federal high-risk analysis.

Key Provisions

• Requires GAO to submit a High Risk List for federally funded state-administered programs within two years and periodically thereafter.
• Covers federal funds administered by states and local governments, including pass-through programs subject to single audit rules.
• Requires identification of high-risk program areas, administrative practices, vulnerability patterns, best practices, tools, technical assistance, and congressional recommendations.
• Directs GAO to rely primarily on existing public oversight, audit, investigative, single-audit, and program-integrity materials.
• Allows supplemental analysis of public federal program data.
• Clarifies that GAO may not compel state or local information or conduct independent audits of state or local programs under this section.