S.Amdt. 1080

SA 1080. Mr. PERDUE (for himself, Mr. Wyden, and Mr. Sanders)
submitted an amendment intended to be proposed to amendment SA 1003
proposed by Mr. McCain (for himself and Mr. Reed) to the bill H.R.
2810, to authorize appropriations for fiscal year 2018 for military
activities of the Department of Defense, for military construction, and
for defense activities of the Department of Energy, to prescribe
military personnel strengths for such fiscal year, and for other
purposes; which was ordered to lie on the table; as follows:

At the end of subtitle A of title X, add the following:

SEC. ___. FINANCIAL AUDIT FUND.

(a) In General.--If the Department of Defense does not
obtain a qualified audit opinion on its full financial
statements for fiscal year 2020 by March 31, 2021, the
Secretary of Defense shall establish a fund to be known as
the ``Financial Audit Fund'' (in this section referred to as
the ``Fund'') for the purpose of activities for the
resolution of Notices of Findings and Recommendations
received.
(b) Elements.--Amounts in the Fund shall include the
following:
(1) Amounts appropriated to the Fund.
(2) Amounts transferred to the Fund under subsection (d).
(3) Any other amounts authorized for transfer or deposit
into the Fund by law.
(c) Availability.--
(1) In general.--Amounts in the Fund shall be available for
activities for the resolution of Notices of Findings and
Recommendations received.
(2) Transfers from fund.--Amounts in the Fund may be
transferred to any other account of the Department in order
to fund activities described in paragraph (1). Any amounts
transferred from the Fund to an account shall be merged with
amounts in the account to which transferred and shall be
available subject to the same terms and conditions as amounts
in such account. The authority to transfer amounts under this
paragraph is in addition to any other authority of the
Secretary to transfer amounts by law.
(3) Limitations.--Amounts in the Fund may be transferred
under this subsection in a fiscal year only to agencies and
organizations of the Department that have an obtained an
unmodified audit opinion on their financial statements for at
least one of the two preceding fiscal years. Amounts so
transferred shall be available only to permit the agency or
organization to which transferred to carry out activities
described in paragraph (1).
(d) Transfers to Fund in Connection With Certain
Organizations.--
(1) Reduction in amount available.--Subject to paragraph
(2), if during any fiscal year after fiscal year 2021 the
Secretary determines that an agency or organization of the
Department has not achieved a qualified opinion on its full
financial statements, is being identified as not audit ready,
is receiving a disclaimer of opinion on its financial
statements, or is receiving an adverse opinion on its
financial statements for the calendar year ending during such
fiscal year--
(A) the amount available to such agency or organization for
the fiscal year in which such determination is made shall be
equal to--
(i) the amount otherwise authorized to be appropriated for
such agency or organization for the fiscal year; minus
(ii) the lesser of--

(I) an amount equal to 0.5 percent of the amount described
in clause (i); or
(II) $100,000,000; and

(B) the Secretary shall deposit in the Fund pursuant to
subsection (b)(2) all amounts unavailable to agencies and
organizations of the Department in the fiscal year pursuant
to determinations made under subparagraph (A).
(2) Inapplicability to amounts for military personnel.--Any
reduction applicable to an agency or organization of the
Department under paragraph (1) for a fiscal year shall not
apply to amounts, if any, available to such agency or
organization for the fiscal year for military personnel.
(3) Limitation on funds transferrable.--The authority to
transfer amounts pursuant to this subsection applies only
with respect to amounts that are appropriated after the date
of the enactment of this Act.
(e) Reports on Transfers.--Not later than 15 days before
the transfer of any amount pursuant subsection (c)(2) or
(d)(1)(B), the Secretary shall submit to the congressional
defense committees a notice on the transfer, including the
agency or organization whose funds will provide the source of
the transfer, the amount of the transfer, and the specific
plans for the use of the amount transferred for the
resolution of Notices of Findings and Recommendations
concerned, as applicable.
(f) Definitions.--In this section:
(1) The term ``audit ready'', with respect to an agency or
organization of the Department of Defense, means that the
agency or organization has in place the critical audit
capabilities and associated infrastructure necessary to
successfully commence and support a financial audit of its
relevant financial statements.
(2) The term ``adverse opinion'', with respect to financial
statements, means an opinion by the auditor of the financial
statements that the financial statements are misleading and
cannot be relied upon.
(3) The term ``disclaimer of opinion'', with respect to
financial statements, means that the auditor of the financial
statements was not able to complete the audit work, and
cannot issue an opinion, on the financial statements.
(4) The term ``qualified opinion'', with respect to
financial statements, means an opinion by the auditor of the
financial statements that the financial statements are
reliable with certain exceptions.
(g) Coordinating Repeal.--Section 1008 of the National
Defense Authorization Act for Fiscal Year 2002 (10 U.S.C. 113
note) is amended by striking subsection (d).
______