To amend section 7504 of title 31, United States Code, to improve the single audit requirements.
Analysis under review: This bill has generated analysis that may be too generic or incomplete. Clause-level evidence remains available below.
Summary
What This Bill Does
This bill improves federal single audit requirements by requiring agencies to identify grant recipients who receive significant federal funds but fail to complete required audits, and mandates biennial reports to Congress.
Who Benefits and How
- Taxpayers benefit from better oversight of federal grant spending
- Congress receives reports on non-compliant recipients
- Government accountability improves through audit quality analysis
Who Bears the Burden and How
- Federal agencies must identify non-audited recipients
- OMB submits biennial reports and designates audit quality reviewer
- Non-compliant recipients face increased scrutiny
Key Provisions
- Agencies must identify recipients spending $300K+ without audits
- Biennial reports to Congress on non-compliant recipients
- Government-wide analysis of single audit quality
- OMB designates agency for audit quality review
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers.
At a Glance
What This Bill Does
This bill, cited as the Financial Management Risk Reduction Act, aims to improve the effectiveness and quality of single audits of Federal awards by enhancing reporting requirements, mandating government-wide analysis of audit quality, developing tools to identify risks, and evaluating the overall system.
Key Policy Areas
Government Operations, Financial Management, Auditing, Federal Grants
Primary Purpose
This bill, cited as the Financial Management Risk Reduction Act, aims to improve the effectiveness and quality of single audits of Federal awards by enhancing reporting requirements, mandating government-wide analysis of audit quality, developing tools to identify risks, and evaluating the overall system.
Policy Domains
Single Audit Requirements Improvement
Identified Gains
Contextual inference, no direct clause citation- congress
- taxpayers
- federal_government
Contextual inference, no direct clause citation
Identified Costs
Contextual inference, no direct clause citation- auditors
- director_of_omb
- federal_agencies
- comptroller_general
- administrator_of_gsa
- recipients_of_federal_awards
Contextual inference, no direct clause citation
Sponsors
Legislative Progress
Enrolled (Passed Congress)Reported by Mr. Peters, with an amendment
Passed House (inferred from enr version)
Passed Senate (inferred from enr version)
Enrolled Bill (inferred from enr version)
Mr. Peters (for himself and Mr. Johnson) introduced the following …
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Federal agencies and affected program participants, Federal agencies implementing audit requirements, Federal grant-making agencies
Positive-direction: Federal agencies and affected program participants
Negative-direction: Federal agencies implementing audit requirements, Federal grant-making agencies
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "auditors"
- → Auditors conducting single audits
- "recipients"
- → Entities receiving Federal awards
- "the_director"
- → Director of the Office of Management and Budget (OMB)
- "state_auditors"
- → State auditors
- "federal_agencies"
- → Various Federal agencies, including those designated by the Director for audit quality analysis
- "inspectors_general"
- → Inspectors General of Federal agencies
- "comptroller_general"
- → Comptroller General of the United States (GAO)
- "congressional_committees"
- → Committee on Homeland Security and Governmental Affairs of the Senate and the Committee on Oversight and Accountability of the House of Representatives
- "administrator_of_general_services"
- → Administrator of General Services (GSA)
- "key_management_single_audit_liaisons"
- → Key management single audit liaisons of Federal agencies
- "council_on_federal_financial_assistance"
- → Council on Federal Financial Assistance (or any successor thereto)
Key Definitions
Terms defined in this bill
Recipients that expend $300,000 or more in Federal awards (or such other amount specified by the Director under section 7502(a)(3) of title 31, United States Code) during the recipient's fiscal year but did not undergo an audit in accordance with chapter 75 of title 31, United States Code.
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology