Peters Introduces Bipartisan Bill to Safeguard Taxpayer Dollars and Improve Independent Auditing of Federal Grant Recipients
WASHINGTON, D.C. – U.S. Senator Gary Peters (MI), Chairman of the Homeland Security and Governmental Affairs Committee, introduced bipartisan legislation to improve the quality, usability, and completeness of independent audit data. State, local, Tribal, and territorial (SLTT) governments receiving over $1 million in federal grants must submit annual independent audits of their financial controls, but the resulting public data is often fragmented, limiting federal oversight and informed decision-making in grant allocation. This bill would enhance the federal government’s responsiveness to audit findings, safeguard taxpayer dollars, and improve fraud risk identification by making audit data more accessible.
“Effective oversight of federal grants is crucial to ensuring taxpayer dollars are spent wisely and efficiently,” said Senator Peters. “My bipartisan bill will enhance our nation’s ability to fight fraud and minimize financial risk to the federal government. By improving the quality and accessibility of audit data, we’re increasing transparency and safeguarding billions in public funds.”
“I am very pleased that the bill incorporates multiple GAO recommendations to help improve the quality and completeness of information on single audit results. It is a step in the right direction in helping to ensure federal award recipients are complying with the requirements of their awards. If effectively implemented, the provision in the bill will strengthen accountability and transparency over federal funds,” said Eugene Louis Dodaro, Comptroller General of the United States and head of the U.S. Government Accountability Office (GAO).
A recent Government Accountability Office (GAO) report highlighted issues affecting the reliability and usefulness of independent audits for state, local, Tribal, and territorial governments receiving over $1 million in federal grants. These issues include inconsistent audit data quality, instances of noncompliance with auditing requirements, and difficulties in accessing and analyzing the resulting data. This fragmented financial information hinders federal agencies’ ability to conduct effective oversight and make informed decisions about grant allocations.
The bipartisan Financial Management Risk Reduction Act would act on key recommendations from the GAO’s report to streamline how the government analyzes independent audit data. The bill would improve the federal government’s ability to combat fraud by leveraging existing single audit data to minimize financial risk. The bill directs the Office of Management and Budget and the General Services Administration to additionally identify fraud risk with a new cross-governmental strategy and advanced analytical tools. To improve the quality of independent audit data, the bill requires periodic government-wide reviews of audit quality that incorporate findings from federal oversight entities. The bill would also increase federal agency coordination to ensure recipients of federal awards are complying with regulation and submitting their required audits.
Peters has led numerous efforts to ensure that taxpayer dollars are spent effectively and efficiently. His bipartisan bill to save taxpayer dollars by ensuring federal property assets are disaster resilient has been signed into law. Another law written by Peters to reduce duplicative software purchases called the MEGAByte Act has saved taxpayers more than $450 million since 2016.
###
