; or (B) affect the Defense Health Program account; and (2) submits to the Committee on Appropriations and the Committee on the Budget of the House of Representatives and the Committee on Appropriations and the Committee on the Budget of the Senate a report on such waiver that includes a description of the specific activities that would be affected and why such activities are essential to the national security of the United States. (d) Report Not later than 60 days after a reduction takes effect under subsection (a), the Director of the Office of Management and Budget shall submit to Congress a report specifying each department, agency, or other element of the Department of Defense subject to reduction and the amount of the reduction. (e) Definitions In this section: (1) The terms financial statement and external independent auditor have the meanings given those terms in section 3521(e) of title 31, United States Code. (2) The term unqualified , with respect to the audit status of a financial statement, includes the characterizations clean and unmodified.