S.Amdt. 3471

SA 3471. Mr. LANKFORD submitted an amendment intended to be proposed
by him to the bill S. 2296, to authorize appropriations for fiscal year
2026 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 appropriate place, insert the following:

SEC. ___. SAFEGUARDING THE TRANSPARENCY AND EFFICIENCY OF
PAYMENTS.

(a) Improper Payments.--
(1) Definitions.--
(A) In general.--Section 3351 of title 31, United States
Code, is amended--
(i) by redesignating paragraphs (2) through (8) as
paragraphs (3) through (9), respectively; and
(ii) 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.''.
(B) Conforming amendments.--Section 3353(a)(4)(B) of title
31, United States Code, is amended--
(i) in clause (i), by striking ``section 3351(2)(B)'' and
inserting ``section 3351(3)(B)'';
(ii) in clause (ii), by striking ``section 3351(2)(C)'' and
inserting ``section 3351(3)(C)'';
(iii) in clause (iii), by striking ``section 3351(2)(D)''
and inserting ``section 3351(3)(D)''; and
(iv) in clause (vi), by striking ``section 3351(2)(A)'' and
inserting ``section 3351(3)(A)''.
(2) Estimates of improper payments and reports on actions
to reduce improper payments.--Section 3352 of title 31,
United States Code, is amended--
(A) in subsection (a)--
(i) 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

(ii) 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.'';
(B) in subsection (c)(1)--
(i) in the matter preceding subparagraph (A), by striking
``subsection (a)(1)'' and inserting ``paragraph (1) or (4) of
subsection (a)''; and
(ii) 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
(C) 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--

[[Page S5243]]

``(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).''.
(3) 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.''.
(b) No Additional Funds.--No additional funds are
authorized to be appropriated for the purpose of carrying out
this section or the amendments made by this section.
______