Page:United States Statutes at Large Volume 124.djvu/2254

124 STAT. 2228 PUBLIC LAW 111–204—JULY 22, 2010 provision of any contract, grant, lease, cooperative agreement, or any other funding mechanism.’’. (f) GUIDANCE BY THE OFFICE OF MANAGEMENT AND BUDGET.— Section 2 of the Improper Payments Information Act of 2002 (31 U.S.C. 3321 note) is amended by striking subsection (g) (as redesig- nated by this section) and inserting the following: ‘‘(g) GUIDANCE BY THE OFFICE OF MANAGEMENT AND BUDGET.— ‘‘(1) IN GENERAL.—Not later than 6 months after the date of enactment of the Improper Payments Elimination and Recovery Act of 2010, the Director of the Office of Management and Budget shall prescribe guidance for agencies to implement the requirements of this section. The guidance shall not include any exemptions to such requirements not specifically authorized by this section. ‘‘(2) CONTENTS.—The guidance under paragraph (1) shall prescribe— ‘‘(A) the form of the reports on actions to reduce improper payments, recovery actions, and governmentwide reporting; and ‘‘(B) strategies for addressing risks and establishing appropriate prepayment and postpayment internal con- trols.’’. (g) DETERMINATIONS OF AGENCY READINESS FOR OPINION ON INTERNAL CONTROL.—Not later than 1 year after the date of enact- ment of this Act, the Director of the Office of Management and Budget shall develop— (1) specific criteria as to when an agency should initially be required to obtain an opinion on internal control over improper payments; and (2) criteria for an agency that has demonstrated a sta- bilized, effective system of internal control over improper pay- ments, whereby the agency would qualify for a multiyear cycle for obtaining an audit opinion on internal control over improper payments, rather than an annual cycle. (h) RECOVERY AUDITS.— (1) DEFINITION.—In this subsection, the term ‘‘agency’’ has the meaning given under section 2(f) of the Improper Payments Information Act of 2002 (31 U.S.C. 3321 note) as redesignated by this Act. (2) IN GENERAL.— (A) CONDUCT OF AUDITS.—Except as provided under paragraph (4) and if not prohibited under any other provi- sion of law, the head of each agency shall conduct recovery audits with respect to each program and activity of the agency that expends $1,000,000 or more annually if con- ducting such audits would be cost-effective. (B) PROCEDURES.—In conducting recovery audits under this subsection, the head of an agency— (i) shall give priority to the most recent payments and to payments made in any program or programs identified as susceptible to significant improper pay- ments under section 2(a) of the Improper Payments Information Act of 2002 (31 U.S.C. 3321 note); (ii) shall implement this subsection in a manner designed to ensure the greatest financial benefit to the Government; and 31 USC 3321 note. Deadline. Criteria. 31 USC 3321 note. Deadline.