Pre-Payment Fraud Prevention and Treasury Data Access Act

6107. Single report on first time use of funds by recipient

(a) Federal award reporting requirement. The head of each agency that administers a covered award shall require each covered recipient to, as a condition of receiving amounts under such award, submit to the head of the agency, not later than 180 days after the receipt of such award unless a deadline exception may be applied pursuant to pursuant to regulations promulgated under subsection (b), a one-time report on the use of such amounts that—

(1) includes any content required to be included in such report pursuant to subsection (b); and

(2) is in the format required under such subsection.

(b) Governmentwide report regulations and guidance

(1) Contents and format of report

(A) Promulgation. Not later than 1 year after the date of the enactment of this section, the Director, in coordination with the Secretary of the Treasury and the standard-setting agency designated under section 6402(a)(1), shall promulgate regulations, and any clarifying guidance as may be necessary, to establish governmentwide requirements for the content and format of the report described under subsection (a).

(B) Updates. Any guidance or regulation promulgated under subparagraph (A) shall be updated as necessary, but in any case, shall be updated not less often than once every 5 years.

(2) Report minimum requirements. The regulations and any clarifying guidance promulgated under paragraph (1), shall at a minimum—

(A) enable the head of an awarding agency to determine whether amounts provided under a covered award are being used by the recipient required to submit the report, and any sub-recipient or sub-grantee thereof, for the intended purpose of the program, as set forth in statute, regulation, or policies and procedures of the agency;

(B) enable fraud prevention, detection, investigation, and mitigation, in future awards of Federal funds to the recipient required to submit the report by identifying relevant fraud-risk indicators that would require a referral for investigation and criminal referral to the appropriate entity of the Federal Government, including any identified effort by a recipient to defraud the Federal Government or violate sections 3729 through 3731 of title 31 (commonly referred to as the False Claims Act);

(C) ensure that any sub-recipient or sub-grantee, at any level, of the recipient required to submit the report provide to such recipient such information as may be necessary to enable aggregate reporting on the covered award by the recipient;

(D) require the heads of agencies to apply the governmentwide data standards established under chapter 64 with respect to the format and content of the report required to be submitted;

(E) align with the Federal award reporting requirements and data standards under the Federal Funding Accountability and Transparency Act of 2006 (Public Law 109–282; 31 U.S.C. 6101 note), to the maximum extent practicable;

(F) reduce recipient and agency reporting burdens by avoiding duplication in recipient reporting obligations, to the extent practicable; and

(G) provide clarification for agencies to apply a reporting deadline exception under subsection (a)(1), which may be made for an entire program or type of covered award, beyond 180 days when the use of the covered funds by the covered recipient takes place more than 180 days after a receipt of such covered award.

(c) Agency requirements. In accordance with the regulations and any clarifying guidance promulgated under subsection (b), the head of an agency that administers a covered award shall—

(1) update the terms and conditions of Federal awards in the agency programs to implement subsection (a) for covered recipients;

(2) include a summary of the post-award reporting requirements established under subsection (a), including the required content and reporting format, in the Notice of Funding Opportunity (which has the meaning given the term in section 200.1 of title 2, Code of Federal Regulations) for Federal financial assistance (as defined under section 7501 of this title) in order to assist applicants for such assistance in understanding post-award reporting obligations;

(3) to the maximum extent practicable—

(A) provide user-friendly and plain language directives for covered recipients to fulfill their reporting obligation under subsection (a); and

(B) use existing post-award reporting requirements to reduce the burden of cumulative post-award reporting; and

(4) establish procedures within the agency to identify covered recipients that are not in compliance with the reporting requirement under subsection (a).

(d) Noncompliance. For a case in which a covered recipient does not submit the report required by subsection (a), the awarding agency shall—

(1) provide a timely written notice of noncompliance to the recipient that—

(A) clearly states the reason for noncompliance;

(B) notifies the recipient of the obligation of the agency to cease further disbursements to the entity until the covered recipient is in compliance; and

(C) provides clear instructions to the covered recipient on how to come back into compliance; and

(2) prevent a payment voucher from being issued under section 3325 for a payment to such recipient for funds related to the particular program for which the report was required, until such report is submitted.

(e) Availability of report. Each report submitted under subsection (a) shall be—

(1) kept on file by the agency for a period of not less than 5 years after the date on the conclusion of the duration of the award; and

(2) made available upon request to—

(A) the Director;

(B) the Secretary of the Treasury;

(C) the Attorney General;

(D) the Inspector General of the agency concerned; and

(E) the appropriate congressional committees.

(f) Use of information included in report. Information included in the report required by subsection (a) shall be used by the agency in support of improper payment activities of the agency under section 3352 as appropriate and applicable.

(g) Definitions. In this section:

(1) Appropriate congressional committees. The term appropriate congressional committees means—

(A) the Committees on Appropriations of the Senate and the House of Representatives;

(B) the Committee on Homeland Security and Governmental Affairs of the Senate;

(C) the Committee on Oversight and Government Reform of the House of Representatives; and

(D) any other relevant congressional committee of jurisdiction.

(2) Covered award. The term covered award means a Federal award (as defined under section 7501) in an amount not less than $50,000 (based on fiscal year 2027 constant dollars).

(3) Covered recipient. The term covered recipient means any entity, including any State, the District of Columbia, and any territory or possession of the United States, including a pass-through entity (as defined under section 7501), that receives the covered award from a particular agency program for the first time in that program’s existence.

(4) Fraud-risk indicator. The term fraud-risk indicator means an objective data point or analytic signal that indicates an anomalous payment pattern or increase in the volume of a payment amount, a verified data mismatch, network or behavioral anomaly, or match identified by the Do Not Pay system and any other payment, account, and payee validation program or service provided by the Department of the Treasury that would result in financial loss to the government.

6107. Single report on first time use of funds by recipient.