; (B) in clause (ii), by striking section 3351(2)(C) and inserting section 3351(3)(C) ; (C) in clause (iii), by striking section 3351(2)(D) and inserting section 3351(3)(D) ; and (D) in clause (vi), by striking section 3351(2)(A) and inserting section 3351(3)(A) . (b) Estimates of improper payments and reports on actions To reduce improper payments Section 3352 of title 31, United States Code, is amended— (1) in subsection (a)— (A) in paragraph (3)— (i) in subparagraph (B), in the matter preceding clause (i), by striking paragraph (1) and inserting paragraph (1)(B) ; and (ii) in subparagraph (C), by striking paragraph (1) and inserting paragraphs (1) and (4) ; and (B) by adding at the end the following: (4) New programs and activities In addition to the programs and activities identified under paragraph (1)(B), the head of an executive agency shall annually identify as susceptible to significant improper payments any program or activity that— (A) has or is expected to have outlays exceeding $100,000,000 in any one of the first 3 fiscal years of operation; and (B) is in the first 4 years of operation. ; (2) in subsection (c)(1)— (A) in the matter preceding subparagraph (A), by striking subsection (a)(1) and inserting paragraph (1) or (4) of subsection (a) ; and (B) by striking subparagraphs (A) and (B) and inserting the following: (A) produce a statistically valid estimate of the improper payments made under the program or activity, or an estimate of such improper payments that is otherwise appropriate using a methodology approved by— (i) the Director of the Office of Management and Budget; and (ii) the chief financial officer of the executive agency; and (B) report the estimates described in subparagraph (A) in accordance with subsection (j). ; and (3) by adding at the end the following: (j) Annual reports Any annual report required to be made by the head of an executive agency under this section shall— (1) be included in full in the document containing the annual financial statement of the executive agency