TRUE Accountability Act

This Act may be cited as the Taxpayer Resources Used in Emergencies Accountability Act or the TRUE Accountability Act.
Subchapter IV of chapter 33 of title 31, United States Code is amended by adding at the end the following new section:
In this section:
The term covered agency means an agency described in section 901(b).
The term Director means the Director of the Office of Management and Budget.
The term internal control means a process that is—
affected by the management and other personnel of an entity; and
designed to provide reasonable assurance with respect to the achievement of objectives relating to—
effectiveness and efficiency of operations;
reliability of financial reporting; and
compliance with applicable law.
Not later than 180 days after the date of the enactment of this section, the Director shall issue, and every 3 years thereafter review and if necessary update, guidance to covered agencies for the development of plans for internal control that are ready or adaptable for immediate use in a future disaster, pandemic, economic relief, or other such emergency supplemental appropriations legislative measure.
The guidance issued under paragraph (1) shall—
incorporate relevant governmentwide documents and best practices for preventing improper payments and mitigating fraud risks in Federal programs, including the documents of the Government Accountability Office entitled A Framework for Managing Improper Payments in Emergency Assistance Programs and A Framework for Managing Fraud Risks in Federal Programs (or any successor documents); and
require a plan for internal control of each covered agency that shall include—
the identification of a senior official of the covered agency to be responsible and accountable for the implementation of the plan; and
policies and procedures to timely—
in accordance with paragraph (3), assess the risks of improper payments and fraud relating to the implementation of any supplemental appropriation, or other increase in budget authority, that may be made available to the covered agency for a purpose relating to implementing a disaster, pandemic, economic relief, or other such emergency supplemental appropriations legislative measure;
develop and implement mitigation strategies to reduce the risks described in subclause (I), including any change to internal controls, to ensure that, to the greatest extent possible, appropriate controls are in place prior to the expenditure of funds; and
adopt real-time, data driven payment monitoring techniques to identify and reduce improper and fraudulent payments, such as anomaly detection, volume plausibility checks, and network analysis.
The assessment of risk required by paragraph (2)(B)(ii)(I) shall include a substantive evaluation of the risk of financial loss to the Federal Government caused by improper payments and fraud that shall include with respect to the relevant agency program or activity—
an assessment of the likelihood and impact of inherent risks affecting the agency program or activity;
an identification of the risk tolerance; and
an assessment of the suitability of existing controls and prioritization of residual risks.
Not later than 1 year after the date of the enactment of this section, the head of each covered agency shall submit to the Director the plan required by subsection (b)(2)(B).
Not later than 3 years after the date on which the head of a covered agency submits a plan under paragraph (1), and not less frequently than once every 3 years thereafter, the head of each covered agency shall—
review and, if necessary, revise the plan of the covered agency; and
submit to the Director any revised plan of the covered agency.
Not later than 15 months after the date of the enactment of this section, and not less frequently than annually thereafter, the Director shall assemble and submit to the Committee on Homeland Security and Governmental Affairs of the Senate and the Committee on Oversight and Government Reform of the House of Representatives the plans submitted by covered agencies under paragraph (1) and a summary of the plans to help agencies prepare to implement such plans, including any action planned to harmonize the agency programs and activities and any legislative recommendations for a future disaster, pandemic, economic relief, or other emergency supplemental appropriation.
Not later than 180 days after the initial obligation of funds under any emergency supplemental appropriations legislative measure for a disaster, pandemic, economic relief, or other emergency, the head of each covered agency that obligates such funds shall submit, in consultation with the Inspector General of the covered agency, to the Director an after-action review of the implementation of the plan required by subsection (b)(2)(B) relevant to such emergency supplemental appropriations legislative measure.
Each after-action review required by paragraph (1) shall include the following:
An assessment of the effectiveness of the internal controls implemented pursuant to the relevant plan in preventing and detecting improper payments and fraud, including the effectiveness of any real-time, data driven payment monitoring techniques used to identify and reduce improper payments and fraud.
A description of any significant control failures or gaps and any fraud risks identified during such implementation.
A summary of the number and amount of improper payments made per agency program or activity.
An explanation of any plan to recover any funds lost as a result of any such improper payment.
Any recommendations for improving internal controls for future emergency supplemental appropriations legislative measures.
The Director shall incorporate the findings of each after-action review required by paragraph (1) into each submission required under subsection (c)(3), including by identifying common challenges, effective practices, and opportunities to improve internal controls across covered agencies.
The table of sections for chapter 33 of title 31, United States Code, is amended by inserting after the item relating to section 3358 the following:
No additional funds are authorized to be appropriated for the purpose of carrying out this Act.