Financial Management Risk Reduction Act

The Financial Management Risk Reduction Act (HR 10155) requires recipients of $300,000 or more in federal funds to identify if they skipped required audits, and directs federal agencies to report these cases to Congress every two years. It mandates federal agencies to develop tools using audit data to spot cross-government risks to federal funds within two years, and to conduct a government-wide audit quality review every three years. The bill also requires a four-year evaluation of these tools' effectiveness and agency responses to audit findings. No new funding is authorized for these requirements.