article: SECTION 1. SHORT TITLE. This Act may be cited as the ``Government Audit Reform Act of 2010''. SEC. 2. SENSE OF CONGRESS. It is the sense of Congress that the Director of the Office of Management and Budget should follow the recommendations of the Government Accountability Office report entitled ``Single Audit: Opportunities Exist to Improve the Single Audit Process and Oversight'' (GAO-09-307R), issued March 13, 2009. SEC. 3. OVERSIGHT OF THE SINGLE AUDIT PROCESS. (a) Amendment to Single Audit Act.-- (1) In general.--Chapter 75 of title 31, United States Code, is amended by adding at the end the following new section: ``Sec. 7508. Oversight and evaluation ``(a) Oversight and Evaluation.--The Director, or the head of the office or entity designated by the Director under subsection (c), shall monitor the risk, cost-benefit, efficiency, and effectiveness of the implementation by Federal agencies of this chapter by-- ``(1) evaluating such implementation governmentwide; and ``(2) identifying additional guidance and resources necessary to improve such implementation, including revisions to regulations, best practices, and processes. ``(b) Report.--The Director, or the head of the office or entity designated by the Director under subsection (c), shall submit to the Committee on Homeland Security and Governmental Affairs of the Senate, the Committee on Oversight and Government Reform of the House of Representatives, and the Comptroller General of the United States a report that includes the findings under subsection (a). The report shall be submitted not later than September 30 of each year and shall cover the previous year. ``(c) Designation of Oversight Entity.--The Director of the Office of Management and Budget shall designate an office in the Office of Management and Budget or another Federal entity to act on behalf of the Director under subsection (a) and submit to the Committee on Homeland Security and Governmental Affairs of the Senate, the Committee on Oversight and Government Reform of the House of Representatives, and the Comptroller General of the United States a report that describes such office or entity and the resources made available to such office or entity to adequately implement the provisions of this section.''. (2) Clerical amendment.--The table of sections at the beginning of chapter 75 of title 31, United States Code, is amended by inserting after the item relating to section 7507 the following new item: ``7508. Oversight and evaluation.''. (b) Simplified Audit Process.-- (1) Evaluation.--The Director, or the head of the office or entity designated by the Director under section 7508(c) of title 31, United States Code, shall evaluate the process for the single audit and the program-specific audit under chapter 75 of title 31, United States Code, to identify simplified alternatives for achieving the purposes of the Single Audit Act of 1984 (Public Law 98-502; 98 Stat. 2327; 31 U.S.C. 7501 note) and the Single Audit Act Amendments of 1996 (Public Law 104- 156; 110 Stat. 1396; 31 U.S.C. 7501 note) for the audits of small recipients that also achieve the proper balance between risk and cost-effective accountability for small and large recipients. (2) Report.--Not later than 6 months after the date of the enactment of this Act, the Director, or the head of the office or entity designated by the Director under section 7508(c) of title 31, United States Code, shall submit to the Committee on Homeland Security and Governmental Affairs of the Senate, the Committee on Oversight and Government Reform of the House of Representatives, and the Comptroller General of the United States, a report on the results of the evaluation under paragraph (1). (3) Definitions.--In this subsection: (A) Director.--The term ``Director'' means the Director of the Office of Management and Budget. (B) Large recipient.--The term ``large recipient'' means a non-Federal entity that expends a total amount of Federal awards equal to or in excess of $300,000 or such other amount specified by the Director under section 7502(a)(3) of title 31, United States Code, in any fiscal year. (C) Non-federal entity.--The term ``non-Federal entity'' has the meaning given that term under section 7501 of title 31, United States Code. (D) Small recipient.--The term ``small recipient'' means a non-Federal entity that expends a total amount of Federal awards of less than $300,000 or such other amount specified by the Director under section 7502(a)(3) of title 31, United States Code, in any fiscal year. (c) Implementation of Recommendations To Improve Audit Quality.-- (1) Evaluation.--The Director of the Office of Management and Budget shall evaluate the implementation of the recommendations made to the Office of Management and Budget by the President's Council on Integrity and Efficiency in the report entitled ``Report on National Single Audit Sampling Project,'' dated June 2007. (2) Report.--Not later than 6 months after the date of the enactment of this Act, the Director of the Office of Management and Budget shall submit to the Committee on Homeland Security and Governmental Affairs of the Senate, the Committee on Oversight and Government Reform of the House of Representatives, and the Comptroller General of the United States a report on the results of the evaluation under paragraph (1). (d) Deadline for Designation of Oversight Entity.--Not later than 60 days after the date of the enactment of this Act, the Director of the Office of Management and Budget shall designate an office in the Office of Management and Budget or another Federal entity under section 7508(c) of title 31, United States Code.
summary: Government Audit Reform Act of 2010 - Expresses the sense of Congress that the Director of the Office of Management and Budget (OMB) should follow the recommendations of the Government Accountability Office (GAO) report entitled "Single Audit: Opportunities Exist to Improve the Single Audit Process and Oversight" (GAO-09-307R), issued March 13, 2009. Amends the Single Audit Act of 1984 to require the OMB Director (or a designee) to monitor and report annually to specified congressional committees and the Comptroller General on the risk, cost-benefit, efficiency, and effectiveness of the implementation of this Act by federal agencies by: (1) evaluating such implementation governmentwide; and (2) identifying additional guidance and resources necessary to improve such implementation, including revisions to regulations, best practices, and processes. Requires the OMB Director to designate an OMB office or another federal entity (oversight entity) to act on OMB's behalf in such monitoring and reporting. Requires the OMB Director (or a designated oversight entity) to evaluate and report to specified congressional committees and the Comptroller General on the process for the single audit and the program-specific audit to identify simplified alternatives for achieving the purposes of the Single Audit Act of 1984 and the Single Audit Act Amendments of 1996 for the audits of small recipients that also achieve the proper balance between risk and cost-effective accountability for small and large recipients. Requires the OMB Director to evaluate and report to specified congressional committees and the Comptroller General on the implementation of the recommendations made to it by the President's Council on Integrity and Efficiency in the report entitled "Report on National Single Audit Sampling Project," dated June 2007. Establishes a deadline for OMB to designate such oversight entity.