S. 80

119 S80 IS: Safeguarding the Transparency and Efficiency of Payments Act
 U.S. Senate
 2025-01-13
 text/xml
 EN
 Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
 II  119th CONGRESS  1st Session  S. 80  IN THE SENATE OF THE UNITED STATES   January 13, 2025   Mr. Lankford  introduced the following bill; which was read twice and referred to the  Committee on Homeland Security and Governmental Affairs    A BILL
To amend title 31, United States Code, to improve the prevention of improper payments, and for other purposes.
1.
Short title
This Act may be cited as the   Safeguarding the Transparency and Efficiency of Payments Act   or the   STEP Act  .
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
(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).
 .
(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:
(d)
Reports
(1)
In general
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—
(A)
on the progress of the agency in—
(i)
implementing—
(I)
the financial and administrative controls required to be established under subsection (c)(1);
(II)
the fraud risk principles in the Standards for Internal Control in the Federal Government of the Government Accountability Office; and
(III)
Circular A–123 of the Office of Management and Budget with respect to the leading practices for managing fraud risk;
(ii)
identifying fraud risks and vulnerabilities, including with respect to payroll, beneficiary payments, grants, large contracts, and purchase and travel cards; and
(iii)
establishing strategies, procedures, and other steps to curb fraud; and
(B)
that includes information on the status of implementing each of the 11 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 .
(2)
Information in report
If the annual financial statement of an agency, or an alternative report of the agency included in the annual financial statement, includes information that fulfills the requirements of this subsection, the head of the agency may include a brief statement to that effect in the financial statement or alternative report without duplicating the information required under this subsection in a separate or standalone report.
 .
3.
No additional funds
No additional funds are authorized to be appropriated for the purpose of carrying out this Act or the amendments made by this Act.