Financial Management Risk Reduction Act

The Financial Management Risk Reduction Act amends federal law to improve oversight of single audits for organizations receiving federal funds. It requires entities that expend $300,000 or more in federal awards during a fiscal year but did not undergo a single audit to identify themselves and participate in a review. The bill mandates federal agencies to conduct regular analyses of audit quality, develop tools to identify cross-government risks using audit data, and submit reports to Congress. After four years, the Government Accountability Office will evaluate the effectiveness of these changes, including reporting burdens and agency responsiveness to audit findings. These provisions directly affect federal agencies, auditors, and recipient organizations receiving federal funds.