The TRUE Accountability Act requires the OMB to provide guidance to federal agencies on developing internal control plans for emergency spending, ensuring resources are used effectively and to prevent fraud. This act mandates agencies to submit and regularly update these plans, enhancing transparency and accountability in emergency financial management.
James Lankford
Senator
OK
The TRUE Accountability Act mandates the Office of Management and Budget (OMB) to provide guidance to federal agencies on developing internal control plans for emergency spending, aimed at preventing improper payments and fraud. Agencies must create and regularly update these plans, submitting them to OMB and Congress for oversight. This act seeks to improve the financial management and accountability of taxpayer resources used during emergencies.
New 'TRUE Accountability Act' Aims to Curb Emergency Spending Fraud, But Will It Work?
The "Taxpayer Resources Used in Emergencies Accountability Act," or "TRUE Accountability Act," is trying to tighten the belt on how federal agencies spend money during emergencies. Basically, it's telling the Office of Management and Budget (OMB) to come up with a playbook for agencies to prevent fraud and wasteful spending when disaster strikes or a public health crisis hits.
Making a List, Checking it Twice?
The OMB has 180 days to issue guidance to agencies on creating "internal control plans." Think of these as emergency spending checklists. The bill, in SEC. 2, wants these plans to line up with the Government Accountability Office's (GAO) best practices for managing risks. Each agency needs to appoint a senior official to take charge, figure out where the money could disappear (improper payments and fraud), and put safeguards in place before the cash starts flowing. They're required to identify "risks of improper payments and fraud related to supplemental appropriations," which is a fancy way of saying they need to spot potential problems with extra emergency funds.
For example, imagine a hurricane hits Florida. Under this law, agencies like FEMA would need a plan, reviewed every three years, detailing exactly how they'll ensure relief funds go to actual victims and legitimate rebuilding efforts, not scammers or inflated contracts. Or, picture a small business owner applying for a disaster loan. The plan should outline steps to verify their eligibility and prevent fraudulent claims before any money is disbursed.
Show Us the Plans
Within a year of this bill becoming law, every agency head has to send their internal control plan to the OMB Director (SEC. 2). The Director then has to forward those plans to Congress every year. This part is about transparency – making sure everyone can see how agencies are supposedly guarding taxpayer dollars.
The Fine Print: No Court, No Cash
Here's where things get a little tricky. The bill, in SEC. 2, explicitly states that any decisions made by the OMB Director or agency heads about these plans can't be challenged in court. This "no judicial review" clause could be a problem. It means there's less oversight if an agency's plan is weak or if the rules are applied unfairly. Also, the bill says no extra money is being authorized to implement these new requirements. This could leave agencies scrambling to find resources to develop and maintain these plans, potentially making them less effective.
So, while the TRUE Accountability Act is trying to do a good thing – protect taxpayer money during emergencies – the lack of judicial oversight and dedicated funding raises some real questions about how well it will actually work in practice.