Summary
Makes the rules for checking federal money stricter to find problems and make sure groups that get money are following the rules.
What problem does this solve?
The government needs a better way to make sure the money it gives out is used correctly. This law creates new requirements for audits and reports to find and fix problems with how federal money is spent.
Who does this affect?
- Federal agencies
- Organizations receiving federal funds
- State and local governments
What does this law do?
Finds groups that skip audits
Requires federal agencies to identify any group that spends over $300,000 in federal money but does not complete a required audit.
Reports audit-skippers to congress
Mandates the Director to send a list of the groups that skipped their audits to Congress every two years.
Checks the quality of audits
Orders a government-wide review of how well single audits are being done, with the first review due in three years and then every six years after.
Creates new tools to find risks
Directs the government to develop new computer tools within two years to analyze audit data and spot risks to federal money across all agencies.
Evaluates the new system
Requires the Comptroller General of the United States to study how well the new tools and strategies work within four years.
What is the real world impact?
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Increases government oversight of federal funds
Forces agencies to track down organizations that receive large amounts of federal money but fail to get the required financial check-ups, aiming to reduce waste and fraud.
When does this start?
This law sets up several deadlines over the next six years for new reports, tools, and reviews.
Report on non-audited groups
Within 2 years, the Director must send Congress the first list of groups that spent federal money but did not get an audit.
Risk-finding tools developed
Within 2 years, the government must create analytic tools to find risks using audit data.
First audit quality review
Within 3 years, the first government-wide analysis of single audit quality must be finished.