#aafth ,,congress #ast ,session ,s4 #cge ,,an ,,act ,to improve efforts to identify and reduce ,governmentwide improper payments1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,payment ,integrity ,information ,act of #bjai4 #b4 ,improper payments 7a7 ,in general ,chapter #cc of title #ca1 ,united ,states ,code1 is amended by adding at the end the following3 ,,iv ,improper payments #ccea4 ,definitions ,in this subchapter3 7#a7 ,annual financial statement ,the term annual financial statement means the annual financial statement required under section #ceae of this title or similar provision of law4 7#b7 ,compliance ,the term compliance means that an executive agency-- 7,a7 has-- 7i7 published improper payments information with the annual financial statement of the executive agency for the most recent fiscal year2 and 7ii7 posted on the website of the executive agency that statement and any accompanying materials required under guidance of the ,office of ,management and ,budget2 7,b7 if required1 has conducted a program specific risk assessment for each program or activity that conforms with the requirements under section #cceb7;a72 7,c7 if required1 publishes improper payments estimates for all programs and activities identified under section #cceb7;a7 in the accompanying materials to the annual financial statement2 7,d7 publishes programmatic corrective action plans prepared under section #cceb7;d7 that the executive agency may have in the accompanying materials to the annual financial statement2 7,e7 publishes improper payments reduction targets established under section #cceb7;d7 that the executive agency may have in the accompanying materials to the annual financial statement for each program or activity assessed to be at risk1 and has demonstrated improvements and developed a plan to meet the reduction targets2 and 7,f7 has reported an improper payment rate of less than #aj percent for each program and activity for which an estimate was published under section #cceb7;c74 7#c7 ,do ,not ,pay ,initiative ,the term ,do ,not ,pay ,initiative means the initiative described in section #cced7;b74 7#d7 ,improper payment ,the term improper payment-- 7,a7 means any payment that should not have been made or that was made in an incorrect amount1 including an overpayment or underpayment1 under a statutory1 contractual1 administrative1 or other legally applicable requirement2 and 7,b7 includes-- 7i7 any payment to an ineligible recipient2 7ii7 any payment for an ineligible good or service2 7iii7 any duplicate payment2 7iv7 any payment for a good or service not received1 except for those payments where authorized by law2 and 7v7 any payment that does not account for credit for applicable discounts4 7#e7 ,payment ,the term payment means any transfer or commitment for future transfer of ,federal funds such as cash1 securities1 loans1 loan guarantees1 and insurance subsidies to any non-,federal person or entity or a ,federal employee1 that is made by a ,federal agency1 a ,federal contractor1 a ,federal grantee1 or a governmental or other organization administering a ,federal program or activity4 7#f7 ,payment for an ineligible good or service ,the term payment for an ineligible good or service includes a payment for any good or service that is rejected under any provision of any contract1 grant1 lease1 cooperative agreement1 or other funding mechanism4 7#g7 ,recovery audit ,the term recovery audit means a recovery audit described in section #cceb7;i74 7#h7 ,state ,the term ,state means each ,state of the ,united ,states1 the ,district of ,columbia1 each territory or possession of the ,united ,states1 and each ,federally recognized ,indian tribe4 #cceb4 ,estimates of improper payments and reports on actions to reduce improper payments 7a7 ,identification of susceptible programs and activities 7#a7 ,in general ,the head of each executive agency shall1 in accordance with guidance prescribed by the ,director of the ,office of ,management and ,budget-- 7,a7 periodically review all programs and activities that the head of the executive agency administers2 and 7,b7 identify all programs and activities with outlays exceeding the statutory threshold dollar amount described in paragraph 7#c77;,a77i7 that may be susceptible to significant improper payments4 7#b7 ,frequency ,a review under paragraph 7#a7 shall be performed for each program and activity that the head of an executive agency administers not less frequently than once every #c fiscal years4 7#c7 ,risk assessments 7,a7 ,definition of significant ,in this paragraph1 the term significant means that1 in the preceding fiscal year1 the sum of a program or activity's improper payments and payments whose propriety cannot be determined by the executive agency due to lacking or insufficient documentation may have exceeded-- 7i7 #aj1jjj1jjj of all reported program or activity payments of the executive agency made during that fiscal year and #a4e percent of program outlays2 or 7ii7 #ajj1jjj1jjj4 7,b7 ,scope ,in conducting a review under paragraph 7#a71 the head of each executive agency shall take into account those risk factors that are likely to contribute to a susceptibility to significant improper payments1 such as-- 7i7 whether the program or activity reviewed is new to the executive agency2 7ii7 the complexity of the program or activity reviewed2 7iii7 the volume of payments made through the program or activity reviewed2 7iv7 whether payments or payment eligibility decisions are made outside of the executive agency1 such as by a ,state or local government2 7v7 recent major changes in program funding1 authorities1 practices1 or procedures2 7vi7 the level1 experience1 and quality of training for personnel responsible for making program eligibility determinations or certifying that payments are accurate2 7vii7 significant deficiencies in the audit report of the executive agency or other relevant management findings that might hinder accurate payment certification2 7viii7 similarities to other programs or activities that have reported improper payment estimates or been deemed susceptible to significant improper payments2 7ix7 the accuracy and reliability of improper payment estimates previously reported for the program or activity1 or other indicator of potential susceptibility to improper payments identified by the ,inspector ,general of the executive agency1 the ,government ,accountability ,office1 other audits performed by or on behalf of the ,federal1 ,state1 or local government1 disclosures by the executive agency1 or any other means2 7x7 whether the program or activity lacks information or data systems to confirm eligibility or provide for other payment integrity needs2 and 7xi7 the risk of fraud as assessed by the executive agency under the ,standards for ,internal ,control in the ,federal ,government published by the ,government ,accountability ,office 7commonly known as the ,green ,book74 7,c7 ,annual report ,each executive agency shall publish an annual report that includes-- 7i7 a listing of each program or activity identified under paragraph 7#a71 including the date on which the program or activity was most recently assessed for risk under paragraph 7#a72 and 7ii7 a listing of any program or activity for which the executive agency makes any substantial changes to the methodologies of the reviews conducted under paragraph 7#a74 7b7 ,improving the determination of improper payments 7#a7 ,in general ,the ,director of the ,office of ,management and ,budget shall on an annual basis-- 7,a7 identify a list of high-priority ,federal programs for greater levels of oversight and review-- 7i7 in which the highest dollar value or highest rate of improper payments occur2 or 7ii7 for which there is a higher risk of improper payments2 and 7,b7 in coordination with the executive agency responsible for administering a high-priority program identified under subparagraph 7,a71 establish annual targets and semi-annual or quarterly actions for reducing improper payments associated with the high-priority program4 7#b7 ,report on high-priority improper payments 7,a7 ,in general ,subject to ,federal privacy policies and to the extent permitted by law1 each executive agency with a program identified under paragraph 7#a77;,a7 shall on an annual basis submit to the ,inspector ,general of the executive agency and the ,office of ,management and ,budget1 and make available to the public1 including through a website1 a report on that program4 7,b7 ,contents ,each report submitted under subparagraph 7,a7-- 7i7 shall describe any action the executive agency-- 7,i7 has taken or plans to take to recover improper payments2 and 7,,ii7 intends to take to prevent future improper payments2 and 7ii7 shall not include-- 7,i7 any referrals the executive agency made or anticipates making to the ,department of ,justice2 or 7,,ii7 any information provided in connection with a referral described in subclause 7,i74 7,c7 ,public availability on central website ,the ,office of ,management and ,budget shall make each report submitted under subparagraph 7,a7 available on a central website4 7,d7 ,availability of information to inspector general ,subparagraph 7,b77ii7 shall not prohibit any referral or information being made available to an ,inspector ,general as otherwise provided by law4 7,e7 ,assessment and recommendations ,the ,inspector ,general of each executive agency that submits a report under subparagraph 7,a7 shall1 for each program of the executive agency that is identified under paragraph 7#a77;,a7-- 7i7 review-- 7,i7 the assessment of the level of risk associated with the program and the quality of the improper payment estimates and methodology of the executive agency relating to the program2 and 7,,ii7 the oversight or financial controls to identify and prevent improper payments under the program2 and 7ii7 submit to the appropriate authorizing and appropriations committees of ,congress recommendations1 which may be included in another report submitted by the ,inspector ,general to ,congress1 for modifying any plans of the executive agency relating to the program1 including improvements for improper payments determination and estimation methodology4 7,f7 ,annual meeting ,not less frequently than once every year1 the head of each executive agency with a program identified under paragraph 7#a77;,a71 or a designee of the head of the executive agency1 shall meet with the ,director of the ,office of ,management and ,budget1 or a designee of the ,director1 to report on actions taken during the preceding year and planned actions to prevent improper payments4 7c7 ,estimation of improper payments 7#a7 ,estimation ,with respect to each program and activity identified under subsection 7a77#a71 the head of the relevant executive agency shall-- 7,a7 produce a statistically valid estimate1 or an estimate that is otherwise appropriate using a methodology approved by the ,director of the ,office of ,management and ,budget1 of the improper payments made under the program or activity2 and 7,b7 include the estimates described in subparagraph 7,a7 in the accompanying materials to the annual financial statement of the executive agency and as required in applicable guidance of the ,office of ,management and ,budget4 7#b7 ,lacking or insufficient documentation 7,a7 ,in general ,for the purpose of producing an estimate under paragraph 7#a71 when the executive agency cannot determine1 due to lacking or insufficient documentation1 whether a payment is proper or not1 the payment shall be treated as an improper payment4 7,b7 ,separate report ,the head of an executive agency may report separately on what portion of the improper payments estimate for a program or activity of the executive agency under paragraph 7#a7 is attributable to lacking or insufficient documentation4 7d7 ,reports on actions ,to reduce improper payments ,with respect to any program or activity of an executive agency with estimated improper payments under subsection 7c71 the head of the executive agency shall provide with the estimate required under subsection 7c7 a report on what actions the executive agency is taking to reduce improper payments1 including-- 7#a7 a description of the causes of the improper payments1 actions planned or taken to correct those causes1 and the planned or actual completion date of the actions taken to address those causes2 7#b7 in order to reduce improper payments to a level below which further expenditures to reduce improper payments would cost more than the amount those expenditures would save in prevented or recovered improper payments1 a statement of whether the executive agency has what is needed with respect to-- 7,a7 internal controls2 7,b7 human capital2 and 7,c7 information systems and other infrastructure2 7#c7 if the executive agency does not have sufficient resources to establish and maintain effective internal controls as described in paragraph 7#b77;,a71 a description of the resources the executive agency has requested in the budget submission of the executive agency to establish and maintain those internal controls2 7#d7 program-specific and activity-specific improper payments reduction targets that have been approved by the ,director of the ,office of ,management and ,budget2 7#e7 a description of the steps the executive agency has taken to ensure that executive agency managers1 programs1 and1 where appropriate1 ,states and local governments are held accountable through annual performance appraisal criteria for-- 7,a7 meeting applicable improper payments reduction targets2 and 7,b7 establishing and maintaining sufficient internal controls1 including an appropriate control environment1 that effectively-- 7i7 prevent improper payments from being made2 and 7ii7 promptly detect and recover improper payments that are made2 and 7#f7 a description of how the level of planned or completed actions by the executive agency to address the causes of the improper payments matches the level of improper payments1 including a breakdown by category of improper payment and specific timelines for completion of those actions4 7e7 ,reports on actions ,to recover improper payments ,with respect to improper payments identified in a recovery audit1 the head of the executive agency shall provide with the estimate required under subsection 7c7 a report on all actions the executive agency is taking to recover the improper payments1 including-- 7#a7 a discussion of the methods used by the executive agency to recover improper payments2 7#b7 the amounts recovered1 outstanding1 and determined to not be collectable1 including the percent those amounts represent of the total improper payments of the executive agency2 7#c7 if a determination has been made that certain improper payments are not collectable1 a justification of that determination2 7#d7 an aging schedule of the amounts outstanding2 7#e7 a summary of how recovered amounts have been disposed of2 7#f7 a discussion of any conditions giving rise to improper payments and how those conditions are being resolved2 and 7#g7 if the executive agency has determined under subsection 7i7 that performing recovery audits for any applicable program or activity is not cost-effective1 a justification for that determination4 7f7 ,governmentwide reporting of improper payments and actions ,to recover improper payments 7#a7 ,report ,each fiscal year1 the ,director of the ,office of ,management and ,budget shall submit a report with respect to the preceding fiscal year on actions that executive agencies have taken to report information regarding improper payments and actions to recover improper payments to-- 7,a7 the ,committee on ,homeland ,security and ,governmental ,affairs of the ,senate2 7,b7 the ,committee on ,oversight and ,reform of the ,house of ,representatives2 and 7,c7 the ,comptroller ,general of the ,united ,states4 7#b7 ,contents ,each report required under paragraph 7#a7 shall include-- 7,a7 a summary of the reports of each executive agency on improper payments and recovery actions submitted under this section2 7,b7 an identification of the compliance status of each executive agency1 as determined by the ,inspector ,general of the executive agency under section #ccec1 to which this section applies2 7,c7 ,governmentwide improper payment reduction targets2 7,d7 a ,governmentwide estimate of improper payments2 and 7,e7 a discussion of progress made towards meeting ,governmentwide improper payment reduction targets4 7g7 ,guidance by the ,office of ,management and ,budget 7#a7 ,in general ,not later than #a year after the date of enactment of this section1 the ,director of the ,office of ,management and ,budget shall prescribe guidance for executive agencies to implement the requirements of this section1 which shall not include any exemptions to those requirements that are not specifically authorized by this section4 7#b7 ,contents ,the guidance under paragraph 7#a7 shall prescribe-- 7,a7 the form of the reports on actions to reduce improper payments1 recovery actions1 and ,governmentwide reporting2 and 7,b7 strategies for addressing risks and establishing appropriate prepayment and postpayment internal controls4 7h7 ,determinations of agency readiness for opinion on internal control ,the criteria required to be developed under section #b7;g7 of the ,improper ,payments ,elimination and ,recovery ,act of #bjaj1 as in effect on the day before the date of enactment of this section-- 7#a7 shall continue to be in effect on and after the date of enactment of this section2 and 7#b7 may be modified as determined appropriate by the ,director of the ,office of ,management and ,budget4 7i7 ,recovery audits 7#a7 ,in general 7,a7 ,conduct of audits ,except as provided under paragraph 7#c7 and if not prohibited under any other provision of law1 the head of each executive agency shall conduct recovery audits with respect to each program and activity of the executive agency that expends #a1jjj1jjj or more annually if conducting the audits would be cost effective4 7,b7 ,procedures ,in conducting a recovery audit under this subsection1 the head of an executive agency-- 7i7 shall give priority to the most recent payments and to payments made in any program identified as susceptible to significant improper payments under subsection 7a72 7ii7 shall implement this subsection in a manner designed to ensure the greatest financial benefit to the ,federal ,government2 and 7iii7 may conduct the recovery audit directly1 by using other departments and agencies of the ,united ,states1 or by procuring performance of recovery audits by private sector sources by contract1 subject to the availability of appropriations1 or by any combination thereof4 7,c7 ,recovery audit contracts ,with respect to a recovery audit procured by an executive agency by contract-- 7i7 subject to subparagraph 7,b77iii71 and except to the extent such actions are outside the authority of the executive agency under section #gajc of title #da1 the head of the executive agency may authorize the contractor to-- 7,i7 notify entities1 including individuals1 of potential overpayments made to those entities2 7,,ii7 respond to questions concerning potential overpayments2 and 7,,iii7 take other administrative actions with respect to an overpayment claim made or to be made by the executive agency2 and 7ii7 the contractor shall not have the authority to make a final determination relating to whether any overpayment occurred or whether to compromise1 settle1 or terminate an overpayment claim4 7,d7 ,contract terms and conditions 7i7 ,in general ,the executive agency shall include in each contract for procurement of performance of a recovery audit a requirement that the contractor shall-- 7,i7 provide to the executive agency periodic reports on conditions giving rise to overpayments identified by the contractor and any recommendations on how to mitigate those conditions2 7,,ii7 notify the executive agency of any overpayments identified by the contractor pertaining to the executive agency or to any other executive agency that are beyond the scope of the contract2 and 7,,iii7 report to the executive agency credible evidence of fraud or vulnerabilities to fraud and conduct appropriate training of personnel of the contractor on identification of fraud4 7ii7 ,reports on actions taken ,each executive agency shall1 on an annual basis1 include in annual financial statement of the executive agency a report on actions taken by the executive agency during the preceding fiscal year to address the recommendations described in clause 7i77,i74 7,e7 ,agency action following notification ,each executive agency shall-- 7i7 take prompt and appropriate action in response to a report or notification by a contractor under subclause 7,i7 or 7,,ii7 of subparagraph 7,d77i7 to collect an overpayment2 and 7ii7 forward to other executive agencies any information that applies to that executive agency4 7#b7 ,disposition of amounts recovered 7,a7 ,in general ,amounts collected by executive agencies each fiscal year through recovery audits shall be treated in accordance with this paragraph4 7,b7 ,distribution ,the head of an executive agency shall determine the distribution of collected amounts described in subparagraph 7,a71 less amounts needed to fulfill the purposes of section #cefb7;a7 of this title1 in accordance with subparagraphs 7,c71 7,d71 and 7,e74 7,c7 ,use for financial management improvement program ,not more than #be percent of the amounts collected by an executive agency through recovery audits-- 7i7 shall be available to the head of the executive agency to carry out the financial management improvement program of the executive agency under paragraph 7#c72 7ii7 may be credited1 if applicable1 for the purpose described in clause 7i7 by the head of an executive agency to any executive agency appropriations and funds that are available for obligation at the time of collection2 and 7iii7 shall be used to supplement and not supplant any other amounts available for the purpose described in clause 7i7 and shall remain available until expended4 7,d7 ,use for original purpose ,not more than #be percent of the amounts collected by an executive agency through recovery audits-- 7i7 shall be credited to the appropriation or fund1 if any1 available for obligation at the time of collection for the same general purposes as the appropriation or fund from which the overpayment was made2 7ii7 shall remain available for the same period and purposes as the appropriation or fund to which credited2 and 7iii7 if the appropriation from which an overpayment was made has expired-- 7,i7 in the case of recoveries of overpayments that are made from a trust or special fund account1 shall revert to that account2 and 7,,ii7 in the case of other recoveries of overpayments-- 7aa7 for amounts that are recovered more than #e fiscal years from the last fiscal year in which the funds were available for obligation1 shall be deposited in the ,treasury as miscellaneous receipts2 and 7bb7 for other amounts1 shall be newly available for the same time period as the funds were originally available for obligation4 7,e7 ,use for inspector general activities ,not more than #e percent of the amounts collected by an executive agency through recovery audits-- 7i7 shall be available to the ,inspector ,general of that executive agency for-- 7,i7 the ,inspector ,general to carry out this ,act2 or 7,,ii7 any other activities of the ,inspector ,general relating to investigating improper payments or auditing internal controls associated with payments2 and 7ii7 shall remain available for the same period and purposes as the appropriation or fund to which credited4 7,f7 ,remainder ,amounts collected that are not applied in accordance with subparagraph 7,b71 7,c71 7,d71 or 7,e7 shall be deposited in the ,treasury as miscellaneous receipts1 except that in the case of recoveries of overpayments that are made from trust or special fund accounts1 those amounts shall revert to those accounts4 7,g7 ,discretionary amounts ,this paragraph shall apply only to recoveries of overpayments that are made from discretionary appropriations1 as defined in section #bej7;c77#g7 of the ,balanced ,budget and ,emergency ,deficit ,control ,act of #aihe 7#b ,u4,s4,c4 #ijj7;c77#g771 and shall not apply to recoveries of overpayments that are made from discretionary amounts that were appropriated before the date of enactment of the ,improper ,payments ,elimination and ,recovery ,act of #bjaj1 as in effect on the day before the date of enactment of this section4 7,h7 ,application ,this paragraph shall not apply to the recovery of an overpayment if the appropriation from which the overpayment was made has not expired4 7#c7 ,financial management improvement program 7,a7 ,requirement ,the head of each executive agency shall conduct a financial management improvement program consistent with rules prescribed by the ,director of the ,office of ,management and ,budget4 7,b7 ,program features ,in conducting a program described in subparagraph 7,a71 the head of an executive agency-- 7i7 shall1 as the first priority of the program1 address problems that contribute directly to executive agency improper payments2 and 7ii7 may seek to reduce errors and waste in other executive agency programs and operations4 7#d7 ,privacy protections ,any nongovernmental entity that1 in the course of recovery auditing or recovery activity under this subsection1 obtains information that identifies an individual or with respect to which there is a reasonable basis to believe that the information can be used to identify an individual1 may not disclose the information for any purpose other than the recovery auditing or recovery activity and governmental oversight of the activity1 unless disclosure for that other purpose is authorized by the individual to the executive agency that contracted for the performance of the recovery auditing or recovery activity4 7#e7 ,rule of construction ,except as provided under paragraph 7#d71 nothing in this subsection shall be construed as terminating or in any way limiting authorities that are otherwise available to executive agencies under existing provisions of law to recover improper payments and use recovered amounts4 #ccec4 ,compliance 7a7 ,annual compliance report by ,inspectors ,general of executive agencies 7#a7 ,in general ,each fiscal year1 the ,inspector ,general of each executive agency shall-- 7,a7 determine whether the executive agency is in compliance2 and 7,b7 submit a report on the determination made under subparagraph 7,a7 to-- 7i7 the head of the executive agency2 7ii7 the ,committee on ,homeland ,security and ,governmental ,affairs of the ,senate2 7iii7 the ,committee on ,oversight and ,reform of the ,house of ,representatives2 and 7iv7 the ,comptroller ,general of the ,united ,states4 7#b7 ,development or use of a central website ,the ,council of the ,inspectors ,general on ,integrity and ,efficiency 7in this subsection referred to as the ,council7 shall develop a public central website1 or make use of a public central website in existence on the date of enactment of this section1 to contain individual compliance determination reports issued by ,inspectors ,general under paragraph 7#a77;,b7 and such additional information as determined by the ,council4 7#c7 ,,omb guidance ,not later than #ahj days after the date of enactment of this section1 the ,director of the ,office of ,management and ,budget1 in consultation with the ,council and with consideration given to the available resources and independence of individual ,offices of ,inspectors ,general1 shall develop and promulgate guidance for the compliance determination reports issued by the ,inspectors ,general under paragraph 7#a77;,b71 which shall require that-- 7,a7 the reporting format used by the ,inspectors ,general is consistent2 7,b7 ,inspectors ,general evaluate and take into account the adequacy of executive agency risk assessments1 improper payment estimates methodology1 and executive agency action plans to address the causes of improper payments2 7,c7 ,inspectors ,general take into account whether the executive agency has correctly identified the causes of improper payments and whether the actions of the executive agency to address those causes are adequate and effective2 7,d7 ,inspectors ,general evaluate the adequacy of executive agency action plans on how the executive agency addresses the causes of improper payments2 and 7,e7 as part of the report1 ,inspectors ,general include an evaluation of executive agency efforts to prevent and reduce improper payments and any recommendations for actions to further improve that prevention and reduction4 7#d7 ,,cigie guidance ,not later than #ahj days after the date of enactment of this section1 the ,council shall1 with consideration given to the available resources and independence of individual ,offices of ,inspectors ,general1 develop and promulgate guidance that specifies procedures for compliance determinations made by the ,inspectors ,general under paragraph 7#a77;,a71 which shall describe procedures for ,inspectors ,general-- 7,a7 to make the determinations consistent regarding compliance2 and 7,b7 to evaluate-- 7i7 for compliance with the requirement described in section #ccea7b77;,b71 the risk assessment methodology of the executive agency1 including whether the audits1 examinations1 and legal actions of the ,inspector ,general indicate a higher risk of improper payments or actual improper payments that were not included in the risk assessments of the executive agency conducted under section #cceb7;a72 7ii7 for compliance with the requirement described in section #ccea7b77;,c71 the accuracy of the rate estimates and whether the sampling and estimation plan used is appropriate given program characteristics2 7iii7 for compliance with the requirement described in section #ccea7b77;,d71 the corrective action plans and whether the plans are adequate and focused on the true causes of improper payments1 including whether the corrective action plans are-- 7,i7 reducing improper payments2 7,,ii7 effectively implemented2 and 7,,iii7 prioritized within the executive agency2 7iv7 the adequacy of executive agency action plans to address the causes of improper payments2 7v7 executive agency efforts to prevent and reduce improper payments1 and any recommendations for actions to further improve2 and 7vi7 whether an executive agency has published an annual financial statement in accordance with the requirement described in section #ccea7b77;,a74 7b7 ,remediation 7#a7 ,noncompliance 7,a7 ,in general ,if an executive agency is determined by the ,inspector ,general of that executive agency not to be in compliance under subsection 7a7 in a fiscal year with respect to a program or activity1 the head of the executive agency shall submit to the appropriate authorizing and appropriations committees of ,congress a plan describing the actions that the executive agency will take to come into compliance4 7,b7 ,plan ,the plan described in subparagraph 7,a7 shall include-- 7i7 measurable milestones to be accomplished in order to achieve compliance for each program or activity2 7ii7 the designation of a senior executive agency official who shall be accountable for the progress of the executive agency in coming into compliance for each program or activity2 and 7iii7 the establishment of an accountability mechanism1 such as a performance agreement1 with appropriate incentives and consequences tied to the success of the official designated under clause 7ii7 in leading the efforts of the executive agency to come into compliance for each program or activity4 7#b7 ,noncompliance for #b fiscal years 7,a7 ,in general ,if an executive agency is determined by the ,inspector ,general of that executive agency not to be in compliance under subsection 7a7 for #b consecutive fiscal years for the same program or activity1 the executive agency shall propose to the ,director of the ,office of ,management and ,budget additional program integrity proposals that would help the executive agency come into compliance4 7,b7 ,additional funding 7i7 ,in general ,if the ,director of the ,office of ,management and ,budget determines that additional funding would help an executive agency described in subparagraph 7,a7 come into compliance1 the head of the executive agency shall obligate additional funding1 in an amount determined by the ,director1 to intensified compliance efforts4 7ii7 ,reprogramming or transfer authority ,in providing additional funding under clause 7i7-- 7,i7 the head of an executive agency shall use any reprogramming or transfer authority available to the executive agency2 and 7,,ii7 if after exercising the reprogramming or transfer authority described in subclause 7,i71 additional funding is necessary to obligate the full level of funding determined by the ,director of the ,office of ,management and ,budget under clause 7i71 the executive agency shall submit a request to ,congress for additional reprogramming or transfer authority4 7#c7 ,reauthorization and statutory proposals ,if an executive agency is determined by the ,inspector ,general of that executive agency not to be in compliance under subsection 7a7 for #c consecutive fiscal years for the same program or activity1 the head of the executive agency shall1 not later than #cj days after the date of that determination1 submit to the appropriate authorizing and appropriations committees of ,congress and the ,comptroller ,general of the ,united ,states-- 7,a7 7i7 reauthorization proposals for each program or activity that has not been in compliance for #c or more consecutive fiscal years2 and 7ii7 proposed statutory changes necessary to bring the program or activity into compliance2 or 7,b7 if the head of the executive agency determines that clauses 7i7 and 7ii7 of subparagraph 7,a7 will not bring the program or activity into compliance1 a description of the actions that the executive agency is undertaking to bring the program or activity into compliance and a timeline of when the compliance will be achieved4 7#d7 ,plan and timeline for compliance ,if an executive agency is determined by the ,inspector ,general of that executive agency not to be in compliance under subsection 7a7 for #d or more consecutive fiscal years for the same program or activity1 the head of the executive agency shall1 not later than #cj days after such determination1 submit to the appropriate authorizing and appropriations committees of ,congress a report that includes-- 7,a7 the activities taken to comply with the requirements for #a1 #b1 #c1 #d1 or more years of noncompliance2 7,b7 a description of any requirements that were fulfilled for #a1 #b1 or #c consecutive years of noncompliance that are still relevant and being pursued as a means to bring the program or activity into compliance and prevent and reduce improper payments2 7,c7 a description of any new corrective actions2 and 7,d7 a timeline for when the program or activity will achieve compliance based on the actions described within the report4 7#e7 ,annual report ,each executive agency shall submit to the appropriate authorizing and appropriations committees of ,congress and the ,comptroller ,general of the ,united ,states-- 7,a7 a list of each program or activity that was determined to not be in compliance under paragraph 7#a71 7#b71 7#c71 or 7#d72 and 7,b7 actions that are planned to bring the program or activity into compliance4 7c7 ,compliance enforcement pilot programs ,the ,director of the ,office of ,management and ,budget may establish #a or more pilot programs that shall test potential accountability mechanisms with appropriate incentives and consequences tied to success in ensuring compliance with this section and eliminating improper payments4 7d7 ,improved estimates guidance ,the guidance required to be provided under section #c7;b7 of the ,improper ,payments ,elimination and ,recovery ,improvement ,act of #bjab1 as in effect on the day before the date of enactment of this section-- 7#a7 shall continue to be in effect on and after the date of enactment of this section2 and 7#b7 may be modified as determined appropriate by the ,director of the ,office of ,management and ,budget4 #cced4 ,do ,not ,pay ,initiative 7a7 ,prepayment and preaward procedures 7#a7 ,in general ,each executive agency shall review prepayment and preaward procedures and ensure that a thorough review of available databases with relevant information on eligibility occurs to determine program or award eligibility and prevent improper payments before the release of any ,federal funds4 7#b7 ,databases ,at a minimum and before issuing any payment or award1 each executive agency shall review as appropriate the following databases to verify eligibility of the payment and award3 7,a7 ,the death records maintained by the ,commissioner of ,social ,security4 7,b7 ,the ,system for ,award ,management ,exclusion ,records1 formerly known as the ,excluded ,parties ,list ,system1 of the ,general ,services ,administration4 7,c7 ,the ,debt ,check ,database of the ,department of the ,treasury4 7,d7 ,the ,credit ,alert ,system or ,credit ,alert ,interactive ,voice ,response ,system of the ,department of ,housing and ,urban ,development4 7,e7 ,the ,list of ,excluded ,individuals_/,entities of the ,office of ,inspector ,general of the ,department of ,health and ,human ,services4 7,f7 ,information regarding incarcerated individuals maintained by the ,commissioner of ,social ,security under sections #bjb7x7 and #afaa7;e7 of the ,social ,security ,act 7#db ,u4,s4,c4 #djb7x71 #achb7;e774 7b7 ,do not pay initiative 7#a7 ,in general ,there is the ,do ,not ,pay ,initiative1 which shall include-- 7,a7 use of the databases described in subsection 7a77#b72 and 7,b7 use of other databases designated by the ,director of the ,office of ,management and ,budget1 or the designee of the ,director1 in consultation with executive agencies and in accordance with paragraph 7#b74 7#b7 ,other databases ,in making designations of other databases under paragraph 7#a77;,b71 the ,director of the ,office of ,management and ,budget1 or the head of any executive agency designated by the ,director1 shall-- 7,a7 consider any database that substantially assists in preventing improper payments2 and 7,b7 provide public notice and an opportunity for comment before designating a database under paragraph 7#a77;,b74 7#c7 ,access and review 7,a7 ,in general ,for purposes of identifying and preventing improper payments1 each executive agency shall have access to1 and use of1 the ,do ,not ,pay ,initiative to verify payment or award eligibility in accordance with subsection 7a74 7,b7 ,matching programs 7i7 ,in general ,the head of the agency operating the ,working ,system may1 in consultation with the ,office of ,management and ,budget1 waive the requirements of section #eeb;a7o7 of title #e in any case or class of cases for computer matching activities conducted under this section4 7ii7 ,guidance ,the ,director of the ,office of ,management and ,budget may issue guidance that establishes requirements governing waivers under clause 7i74 7,c7 ,other entities ,each ,state and any contractor1 subcontractor1 or agent of a ,state1 including a ,state auditor or ,state program responsible for reducing improper payments of a federally funded ,state-administered program1 and the judicial and legislative branches of the ,united ,states1 as defined in paragraphs 7#b7 and 7#c71 respectively1 of section #bjb7;e7 of title #ah1 shall have access to1 and use of1 the ,do ,not ,pay ,initiative for the purpose of verifying payment or award eligibility for payments4 7,d7 ,consistency with ,privacy ,act of #aigd ,to ensure consistency with the principles of section #eeb;a of title #e 7commonly known as the ,privacy ,act of #aigd71 the ,director of the ,office of ,management and ,budget may issue guidance that establishes privacy and other requirements that shall be incorporated into ,do ,not ,pay ,initiative access agreements with ,states1 including any contractor1 subcontractor1 or agent of a ,state1 and the judicial and legislative branches of the ,united ,states1 as defined in paragraphs 7#b7 and 7#c71 respectively1 of section #bjb7;e7 of title #ah4 7#d7 ,payment otherwise required ,when using the ,do ,not ,pay ,initiative1 an executive agency shall recognize that there may be circumstances under which the law requires a payment or award to be made to a recipient1 regardless of whether that recipient is identified as potentially ineligible under the ,do ,not ,pay ,initiative4 7#e7 ,annual report ,the ,director of the ,office of ,management and ,budget shall submit to ,congress an annual report1 which may be included as part of another report submitted to ,congress by the ,director1 regarding the operation of the ,do ,not ,pay ,initiative1 which shall-- 7,a7 include an evaluation of whether the ,do ,not ,pay ,initiative has reduced improper payments or improper awards2 and 7,b7 provide the frequency of corrections or identification of incorrect information4 7c7 ,initial working system ,the working system required to be established under section #e7;d7 of the ,improper ,payments ,elimination and ,recovery ,improvement ,act of #bjab1 as in effect on the day before the date of enactment of this section-- 7#a7 shall continue to be in effect on and after the date of enactment of this section2 and 7#b7 shall require each executive agency to review all payments and awards for all programs and activities of that executive agency through the working system4 7d7 ,facilitating data access by ,federal agencies and offices of ,inspectors ,general for purposes of program integrity 7#a7 ,computer matching by executive agencies for purposes of investigation and prevention of improper payments and fraud 7,a7 ,in general ,except as provided in this paragraph1 in accordance with section #eeb;a of title #e 7commonly known as the ,privacy ,act of #aigd71 the head of each executive agency may enter into computer matching agreements with other heads of executive agencies that allow ongoing data matching1 which shall include automated data matching1 in order to assist in the detection and prevention of improper payments4 7,b7 ,review ,not later than #fj days after the date on which a proposal for an agreement under subparagraph 7,a7 has been presented to a ,data ,integrity ,board established under section #eeb;a7u7 of title #e for consideration1 the ,data ,integrity ,board shall respond to the proposal4 7,c7 ,termination date ,an agreement described in subparagraph 7,a7-- 7i7 shall have a termination date of less than #c years2 and 7ii7 during the #c-month period ending on the date on which the agreement is scheduled to terminate1 may be renewed by the executive agencies entering the agreement for not more than #c years4 7,d7 ,multiple agencies ,for purposes of this paragraph1 section #eeb;a7o77#a7 of title #e shall be applied by substituting between the source agency and the recipient agency or non-,federal agency or an agreement governing multiple agencies for between the source agency and the recipient agency or non-,federal agency in the matter preceding subparagraph 7,a74 7,e7 ,cost-benefit analysis ,a justification under section #eeb;a7o77#a77;,b7 of title #e relating to an agreement under subparagraph 7,a7 is not required to contain a specific estimate of any savings under the computer matching agreement4 7#b7 ,guidance and procedures by the office of management and budget ,the guidance1 rules1 and procedures required to be issued1 clarified1 and established under paragraphs 7#c7 and 7#d7 of section #e7;e7 of the ,improper ,payments ,elimination and ,recovery ,improvement ,act of #bjab1 as in effect on the day before the date of enactment of this section-- 7,a7 shall continue to be in effect on and after the date of enactment of this section2 and 7,b7 may be modified as determined appropriate by the ,director of the ,office of ,management and ,budget4 7#c7 ,compliance ,the head of each executive agency1 in consultation with the ,inspector ,general of the executive agency1 shall ensure that any information provided to an individual or entity under this subsection is provided in accordance with protocols established under this subsection4 7#d7 ,rule of construction ,nothing in this subsection shall be construed-- 7,a7 to affect the rights of an individual under section #eeb;a7p7 of title #e2 or 7,b7 to impede the exercise of an exemption provided to ,inspectors ,general or by an executive agency in coordination with an ,inspector ,general under section #f7;j7 of the ,inspector ,general ,act of #aigh 7#e ,u4,s4,c4 ,app474 7e7 ,plan ,to curb ,federal improper payments to deceased individuals by improving the quality and use by ,federal agencies of the ,social ,security administration death master file and other death data 7#a7 ,establishment ,in conjunction with the ,commissioner of ,social ,security and in consultation with relevant stakeholders that have an interest in or responsibility for providing the data1 and each ,state1 the ,director of the ,office of ,management and ,budget shall conduct a study and update the plan required to be established under section #e7;g7 of the ,improper ,payments ,elimination and ,recovery ,improvement ,act of #bjab1 as in effect on the day before the date of enactment of this section1 for improving the quality1 accuracy1 and timeliness of death data maintained by the ,social ,security ,administration1 including death information reported to the ,commissioner under section #bje7r7 of the ,social ,security ,act 7#db ,u4,s4,c4 #dje7r774 7#b7 ,additional actions under plan ,the plan described in this subsection shall include recommended actions by executive agencies to-- 7,a7 increase the quality and frequency of access to the ,death ,master ,file and other death data2 7,b7 achieve a goal of at least daily access as appropriate2 7,c7 provide for all ,states and other data providers to use improved and electronic means for providing data2 7,d7 identify improved methods by executive agencies for determining ineligible payments due to the death of a recipient through proactive verification means2 and 7,e7 address improper payments made by executive agencies to deceased individuals as part of ,federal retirement programs4 7#c7 ,report ,not later than #abj days after the date of enactment of this section1 the ,director of the ,office of ,management and ,budget shall submit a report to ,congress on the plan described in this subsection1 including recommended legislation4 #ccee4 ,improving recovery of improper payments ,the ,director of the ,office of ,management and ,budget shall determine-- 7#a7 current and historical rates and amounts of recovery of improper payments1 or1 in cases in which improper payments are identified solely on the basis of a sample1 recovery rates and amounts estimated on the basis of the applicable sample1 including a list of executive agency recovery audit contract programs and specific information of amounts and payments recovered by recovery audit contractors2 and 7#b7 targets for recovering improper payments1 including specific information on amounts and payments recovered by recovery audit contractors4 #ccef4 ,improving the use of data by executive agencies for curbing improper payments 7a7 ,prompt reporting of death information by the ,department of ,state and the ,department of ,defense ,the procedure required to be established under section #g7;a7 of the ,improper ,payments ,elimination and ,recovery ,improvement ,act of #bjab1 as in effect on the day before the date of enactment of this section-- 7#a7 shall continue to be in effect on and after the date of enactment of this section2 and 7#b7 may be modified as determined appropriate by the ,director of the ,office of ,management and ,budget4 7b7 ,prompt reporting of death information by the ,department of ,veterans ,affairs and the ,office of ,personnel ,management ,not later than #a year after the date of enactment of this section1 the ,secretary of ,veterans ,affairs and the ,director of the ,office of ,personnel ,management shall establish a procedure under which the ,secretary and the ,director-- 7#a7 shall promptly and on a regular basis submit information relating to the deaths of individuals1 including stopped payments data as applicable1 to each executive agency for which the ,director of the ,office of ,management and ,budget determines receiving and using such information would be relevant and necessary2 and 7#b7 to facilitate the centralized access of death data for the use of reducing improper payments1 may identify additional ,federal sources of death data and direct the data owner to provide that data to #a or more executive agencies for that purpose4 7c7 ,guidance to executive agencies regarding data access and use for improper payments purposes ,the guidance required to be issued under section #g7;b7 of the ,improper ,payments ,elimination and ,recovery ,improvement ,act of #bjab1 as in effect on the day before the date of enactment of this section-- 7#a7 shall continue to be in effect on and after the date of enactment of this section2 and 7#b7 may be modified as determined appropriate by the ,director of the ,office of ,management and ,budget4 #cceg4 ,financial and administrative controls relating to fraud and improper payments 7a7 ,definition ,in this section1 the term agency has the meaning given the term in section #eea of title #e4 7b7 ,guidelines ,the guidelines required to be established under section #c7;a7 of the ,fraud ,reduction and ,data ,analytics ,act of #bjae1 as in effect on the day before the date of enactment of this section-- 7#a7 shall continue to be in effect on and after the date of enactment of this section2 and 7#b7 may be periodically modified by the ,director of the ,office of ,management and ,budget1 in consultation with the ,comptroller ,general of the ,united ,states1 as the ,director and ,comptroller ,general may determine necessary4 7c7 ,requirements for controls ,the guidelines described in subsection 7b7 shall include-- 7#a7 conducting an evaluation of fraud risks and using a risk-based approach to design and implement financial and administrative control activities to mitigate identified fraud risks2 7#b7 collecting and analyzing data from reporting mechanisms on detected fraud to monitor fraud trends and using that data and information to continuously improve fraud prevention controls2 and 7#c7 using the results of monitoring1 evaluation1 audits1 and investigations to improve fraud prevention1 detection1 and response4 7d7 ,report ,for each of fiscal years #bjai and #bjbj1 each agency shall submit to ,congress1 as part of the annual financial report of the agency1 a report of the agency on-- 7#a7 implementing-- 7,a7 the financial and administrative controls described in subsection 7b72 7,b7 the fraud risk principle in the ,standards for ,internal ,control in the ,federal ,government published by the ,government ,accountability ,office 7commonly known as the ,green ,book72 and 7,c7 ,office of ,management and ,budget ,circular ,a-#abc1 or any successor thereto1 with respect to the leading practices for managing fraud risk2 7#b7 identifying risks and vulnerabilities to fraud1 including with respect to payroll1 beneficiary payments1 grants1 large contracts1 and purchase and travel cards2 and 7#c7 establishing strategies1 procedures1 and other steps to curb fraud4 #cceh4 ,interagency working group for ,governmentwide payment integrity improvement 7a7 ,working group 7#a7 ,establishment ,not later than #ij days after the date of enactment of this section1 there is established an interagency working group on payment integrity-- 7,a7 to improve-- 7i7 ,state-administered ,federal programs to determine eligibility processes and data sharing practices2 7ii7 the guidelines described in section #cceg7;b7 and other best practices and techniques for detecting1 preventing1 and responding to improper payments1 including improper payments that are the result of fraud2 and 7iii7 the sharing and development of data analytics techniques to help prevent and identify potential improper payments1 including those that are the result of fraud2 and 7,b7 to identify any additional activities that will improve payment integrity of ,federal programs4 7#b7 ,composition ,the interagency working group established under paragraph 7#a7 shall be composed of-- 7,a7 the ,director of the ,office of ,management and ,budget2 7,b7 #a representative from each of the agencies described in paragraphs 7#a7 and 7#b7 of section #ija7;b7 of this title2 and 7,c7 any other representatives of other executive agencies determined appropriate by the ,director of the ,office of ,management and ,budget1 which may include the ,chief ,information ,officer1 the ,chief ,procurement ,officer1 the ,chief ,risk ,officer1 or the ,chief ,operating ,officer of an executive agency4 7b7 ,consultation ,the working group established under subsection 7a77#a7 may consult with ,offices of ,inspectors ,general and ,federal and non-,federal experts on fraud risk assessments1 administrative controls over payment integrity1 financial controls1 and other relevant matters4 7c7 ,meetings ,the working group established under subsection 7a77#a7 shall hold not fewer than #d meetings per year4 7d7 ,report ,not later than #bdj days after the date of enactment of this section1 the working group established under subsection 7a77#a7 shall submit to ,congress a report that includes-- 7#a7 a plan containing tangible solutions to prevent and reduce improper payments2 and 7#b7 a plan for ,state agencies to work with ,federal agencies to regularly review lists of beneficiaries of ,state-managed ,federal programs for duplicate enrollment between ,states1 including how the ,do ,not ,pay ,business ,center and the data analytics initiative of the ,department of the ,treasury could aid in the detection of duplicate enrollment4 4 7b7 ,technical and conforming amendment ,the table of sections for chapter #cc of title #ca1 ,united ,states ,code1 is amended by adding at the end the following3 ,subchapter ,,iv--,improper payments#ccea4 ,definitions4#cceb4 ,estimates of improper payments and reports on actions to reduce improper payments4#ccec4 ,compliance4#cced4 ,do ,not ,pay ,initiative4#ccee4 ,improving recovery of improper payments4#ccef4 ,improving the use of data by executive agencies for curbing improper payments4#cceg4 ,financial and administrative controls relating to fraud and improper payments4#cceh4 ,interagency working group for ,governmentwide payment integrity improvement4 4 #c4 ,repeals 7a7 ,in general 7#a7 ,improper ,payments ,information ,act of #bjjb ,the ,improper ,payments ,information ,act of #bjjb 7#ca ,u4,s4,c4 #ccba note7 is repealed4 7#b7 ,improper ,payments ,elimination and ,recovery ,act of #bjaj ,the ,improper ,payments ,elimination and ,recovery ,act of #bjaj 7,public ,law #aad-bjd2 #abd ,stat4 #bbbd7 is repealed4 7#c7 ,improper ,payments ,elimination and ,recovery ,improvement ,act of #bjab ,the ,improper ,payments ,elimination and ,recovery ,improvement ,act of #bjab 7#ca ,u4,s4,c4 #ccba note7 is repealed4 7#d7 ,fraud ,reduction and ,data ,analytics ,act of #bjae ,the ,fraud ,reduction and ,data ,analytics ,act of #bjae 7#ca ,u4,s4,c4 #ccba note7 is repealed4 7b7 ,technical and conforming amendments 7#a7 ,government ,charge ,card ,abuse ,prevention ,act of #bjab ,section #f7;a7 of the ,government ,charge ,card ,abuse ,prevention ,act of #bjab 7#e ,u4,s4,c4 #egja note7 is amended by striking section #ceab of title #ca1 ,united ,states ,code1 or in the ,improper ,payments ,information ,act of #bjjb 7#ca ,u4,s4,c4 #ccba note7 and inserting section #ceab or subchapter ,,iv of chapter #cc of title #ca1 ,united ,states ,code4 7#b7 ,homeland ,security ,act of #bjjb ,section #bjbb7;a7 of the ,homeland ,security ,act of #bjjb 7#f ,u4,s4,c4 #fab7;a77 is amended-- 7,a7 in paragraph 7#a77;,c71 by striking ,consistent with the ,improper ,payments ,information ,act of #bjjb 7#ca ,u4,s4,c4 #ccba note7 and inserting ,consistent with subchapter ,,iv of chapter #cc of title #ca1 ,united ,states ,code2 and 7,b7 in paragraph 7#e71 by striking section #b7;h7 of the ,improper ,payments ,elimination and ,recovery ,act of #bjaj 7#ca ,u4,s4,c4 #ccba note7 and inserting section #cceb7;i7 of title #ca1 ,united ,states ,code14 7#c7 ,social ,security ,act ,section #baje of the ,social ,security ,act 7#db ,u4,s4,c4 #acig;ee7c77 is amended by striking ,improper ,payments ,information ,act of #bjjb each place that term appears and inserting subchapter ,,iv of chapter #cc of title #ca1 ,united ,states ,code4 7#d7 ,title #ca ,section #cefb7;a7 of title #ca1 ,united ,states ,code1 is amended-- 7,a7 in the matter preceding paragraph 7#a7-- 7i7 by striking section #cefa and inserting section #cceb7;i72 and 7ii7 by striking agency for the following purposes3 and all that follows through ,to reimburse and inserting agency to reimburse2 and 7,b7 by striking paragraph 7#b74 ,passed the ,senate ,july #af1 #bjai4,secretary