TRUE Accountability Act

This bill would require federal agencies to develop and implement specific plans to prevent fraud and improper payments associated with emergency spending, such as disaster or pandemic relief. The Office of Management and Budget would provide guidance for these plans, which must include strategies to evaluate financial risks, implement reduction measures before funds are spent, and use monitoring tools like anomaly detection. Agencies would be required to update these plans every three years and submit them to Congress to improve oversight of emergency appropriations.

This bill primarily affects federal agencies that manage emergency spending, such as funding for disasters or pandemics, by requiring them to develop fraud prevention and improper payment plans. The Office of Management and Budget (OMB) is also affected, as it must issue guidance, review agency plans, and submit annual reports to Congress. Additionally, the Government Accountability Office (GAO) is involved through the incorporation of its existing risk management frameworks into federal guidance.

• Agency fraud and improper payment prevention plans. Federal agencies must develop and implement specific plans to prevent fraud and improper payments associated with emergency spending, such as disaster or pandemic funding.
• OMB guidance and oversight. The Office of Management and Budget is required to issue and triennially review guidance for these agency plans, incorporating GAO frameworks for managing fraud risk and improper payments.
• Mandatory plan components. Agency plans must include procedures to evaluate financial loss risks, develop pre-expenditure risk reduction strategies, and adopt payment monitoring techniques like anomaly detection.
• Reporting and legislative recommendations. Agencies must submit and periodically update their plans with OMB, which will then provide the plans to Congress annually along with implementation support information and legislative recommendations.

Agencies must submit their fraud prevention and improper payment plans to the Office of Management and Budget within one year of the bill's enactment. Additionally, the guidance issued by the Office of Management and Budget must be reviewed every three years, and agencies are required to revise and resubmit their plans at least every three years.

The bill requires the Office of Management and Budget to develop guidance that incorporates existing Government Accountability Office frameworks for managing fraud risk and improper payments in federal programs. It also establishes new planning and reporting requirements for federal agencies to supplement current internal controls regarding emergency spending.

The bill aims to enhance oversight of federal emergency spending by requiring agencies to implement comprehensive plans and internal controls to prevent fraud and improper payments. It seeks to standardize risk management by aligning agency procedures with established federal frameworks for financial accountability during disasters and pandemics.