#aaf? ,,congress  #a/ ,session  ,s4 #cge
  ,,an ,,act  ,to improve ef=ts to      
id5tify & r$uce ,gov]nm5twide improp]   
paym5ts1 & = o!r purposes4  #a4 ,%ort   
title ,?is ,act may be cit$ z ! ,paym5t 
,integrity ,in=mation ,act ( #bjai4  #b4
 ,improp] paym5ts  7a7 ,9 g5]al ,*apt]  
#cc ( title #ca1 ,unit$ ,/ates ,code1 is
 am5d$ by add+ at ! end ! foll[+3  ,,iv 
,improp] paym5ts  #ccea4 ,def9itions ,9 
?is sub*apt]3  7#a7 ,annual f9ancial    
/atem5t ,! t]m annual f9ancial /atem5t  
means ! annual f9ancial /atem5t requir$ 
"u section #ceae ( ?is title or simil>  
provision ( law4  7#b7 ,compliance ,!   
t]m compliance means t an executive     
ag5cy-- 7,a7 has--  7i7 publi%$ improp] 
paym5ts in=mation ) ! annual f9ancial   
/atem5t ( ! executive ag5cy = ! mo/     
rec5t fiscal ye>2 &  7ii7 po/$ on !     
website ( ! executive ag5cy t /atem5t & 
any accompany+ mat]ials requir$ "u      
guidance ( ! ,(fice ( ,managem5t &      
,budget2  7,b7 if requir$1 has conduct$ 
a program specific risk assessm5t = ea* 

program or activity t con=ms ) !        
requirem5ts "u section #cceb7;a72  7,c7 
if requir$1 publi%es improp] paym5ts    
e/imates = all programs & activities    
id5tifi$ "u section #cceb7;a7 9 !       
accompany+ mat]ials to ! annual f9ancial
 /atem5t2  7,d7 publi%es programmatic   
corrective action plans prep>$ "u       
section #cceb7;d7 t ! executive ag5cy   
may h 9 ! accompany+ mat]ials to !      
annual f9ancial /atem5t2  7,e7 publi%es 
improp] paym5ts r$uction t>gets e/abli%$
 "u section #cceb7;d7 t ! executive     
ag5cy may h 9 ! accompany+ mat]ials to !
 annual f9ancial /atem5t = ea* program  
or activity assess$ to be at risk1 & has
 demon/rat$ improvem5ts & develop$ a    
plan to meet ! r$uction t>gets2 &  7,f7 
has report$ an improp] paym5t rate (    
less ?an #aj p]c5t = ea* program &      
activity = :i* an e/imate 0 publi%$ "u  
section #cceb7;c74  7#c7 ,d ,n ,pay     
,initiative ,! t]m ,d ,n ,pay           
,initiative means ! initiative describ$ 
9 section #cced7;b74  7#d7 ,improp]     

paym5t ,! t]m improp] paym5t--  7,a7    
means any paym5t t %\ld n h be5 made or 
t 0 made 9 an incorrect am\nt1 includ+  
an ov]paym5t or und]paym5t1 "u a        
/atutory1 contractual1 adm9i/rative1 or 
o!r legally applicable requirem5t2 &    
7,b7 includes-- 7i7 any paym5t to an    
ineligible recipi5t2  7ii7 any paym5t = 
an ineligible good or s]vice2  7iii7 any
 duplicate paym5t2  7iv7 any paym5t = a 
good or s]vice n receiv$1 except = ^?   
paym5ts :]e au?oriz$ by law2 &  7v7 any 
paym5t t does n acc\nt = cr$it =        
applicable disc\nts4  7#e7 ,paym5t ,!   
t]m paym5t means any transf] or         
commitm5t = future transf] ( ,f$]al     
funds su* z ca%1 securities1 loans1 loan
 gu>antees1 & insurance subsidies to any
 non-,f$]al p]son or entity or a ,f$]al 
employee1 t is made by a ,f$]al ag5cy1 a
 ,f$]al contractor1 a ,f$]al grantee1 or
 a gov]nm5tal or o!r organization       
adm9i/]+ a ,f$]al program or activity4  
7#f7 ,paym5t = an ineligible good or    
s]vice ,! t]m paym5t = an ineligible    

good or s]vice includes a paym5t = any  
good or s]vice t is reject$ "u any      
provision ( any contract1 grant1 lease1 
coop]ative agreem5t1 or o!r fund+       
me*anism4  7#g7 ,recov]y audit ,! t]m   
recov]y audit means a recov]y audit     
describ$ 9 section #cceb7;i74  7#h7     
,/ate ,! t]m ,/ate means ea* ,/ate ( !  
,unit$ ,/ates1 ! ,di/rict ( ,columbia1  
ea* t]ritory or possession ( ! ,unit$   
,/ates1 & ea* ,f$]ally recogniz$ ,indian
 tribe4  #cceb4 ,e/imates ( improp]     
paym5ts & reports on actions to r$uce   
improp] paym5ts  7a7 ,id5tification (   
susceptible programs & activities  7#a7 
,9 g5]al ,! head ( ea* executive ag5cy  
%all1 9 accordance ) guidance prescrib$ 
by ! ,director ( ! ,(fice ( ,managem5t &
 ,budget--  7,a7 p]iodically review all 
programs & activities t ! head ( !      
executive ag5cy adm9i/]s2 &  7,b7       
id5tify all programs & activities )     
outlays exce$+ ! /atutory ?re%old doll> 
am\nt describ$ 9 p>agraph 7#c77;,a77i7 t
 may be susceptible to significant      

improp] paym5ts4  7#b7 ,frequ5cy ,a     
review "u p>agraph 7#a7 %all be p]=m$ = 
ea* program & activity t ! head ( an    
executive ag5cy adm9i/]s n less         
frequ5tly ?an once e #c fiscal ye>s4    
7#c7 ,risk assessm5ts  7,a7 ,def9ition (
 significant ,9 ?is p>agraph1 ! t]m     
significant means t1 9 ! prec$+ fiscal  
ye>1 ! sum ( a program or activity's    
improp] paym5ts & paym5ts ^: propriety  
_c be det]m9$ by ! executive ag5cy due  
to lack+ or insuffici5t docum5tation may
 h exce$$--  7i7 #aj1jjj1jjj ( all      
report$ program or activity paym5ts ( ! 
executive ag5cy made dur+ t fiscal ye> &
 #a4e p]c5t ( program outlays2 or  7ii7 
#ajj1jjj1jjj4  7,b7 ,scope ,9 conduct+ a
 review "u p>agraph 7#a71 ! head ( ea*  
executive ag5cy %all take into acc\nt ^?
 risk factors t are likely to contribute
 to a susceptibility to significant     
improp] paym5ts1 su* z--  7i7 :e!r !    
program or activity review$ is new to ! 
executive ag5cy2  7ii7 ! complexity ( ! 
program or activity review$2  7iii7 !   

volume ( paym5ts made ?r\gh ! program or
 activity review$2  7iv7 :e!r paym5ts or
 paym5t eligibility decisions are made  
outside ( ! executive ag5cy1 su* z by a 
,/ate or local gov]nm5t2  7v7 rec5t     
major *anges 9 program fund+1           
au?orities1 practices1 or proc$ures2    
7vi7 ! level1 exp]i5ce1 & quality (     
tra9+ = p]sonnel responsible = mak+     
program eligibility det]m9ations or     
c]tify+ t paym5ts are accurate2  7vii7  
significant defici5cies 9 ! audit report
 ( ! executive ag5cy or o!r relevant    
managem5t f9d+s t might h9d] accurate   
paym5t c]tification2  7viii7 simil>ities
 to o!r programs or activities t h      
report$ improp] paym5t e/imates or be5  
deem$ susceptible to significant improp]
 paym5ts2  7ix7 ! accuracy & reliability
 ( improp] paym5t e/imates previ\sly    
report$ = ! program or activity1 or o!r 
indicator ( pot5tial susceptibility to  
improp] paym5ts id5tifi$ by ! ,inspector
 ,g5]al ( ! executive ag5cy1 ! ,gov]nm5t
 ,acc\ntability ,(fice1 o!r audits p]=m$

 by or on behalf ( ! ,f$]al1 ,/ate1 or  
local gov]nm5t1 disclosures by !        
executive ag5cy1 or any o!r means2  7x7 
:e!r ! program or activity lacks        
in=mation or data sy/ems to confirm     
eligibility or provide = o!r paym5t     
integrity ne$s2 &  7xi7 ! risk ( fraud z
 assess$ by ! executive ag5cy "u !      
,/&>ds = ,int]nal ,control 9 ! ,f$]al   
,gov]nm5t publi%$ by ! ,gov]nm5t        
,acc\ntability ,(fice 7commonly kn[n z !
 ,gre5 ,book74  7,c7 ,annual report ,ea*
 executive ag5cy %all publi% an annual  
report t includes-- 7i7 a li/+ ( ea*    
program or activity id5tifi$ "u p>agraph
 7#a71 includ+ ! date on :i* ! program  
or activity 0 mo/ rec5tly assess$ = risk
 "u p>agraph 7#a72 &  7ii7 a li/+ ( any 
program or activity = :i* ! executive   
ag5cy makes any sub/antial *anges to !  
me?odologies ( ! reviews conduct$ "u    
p>agraph 7#a74  7b7 ,improv+ !          
det]m9ation ( improp] paym5ts  7#a7 ,9  
g5]al ,! ,director ( ! ,(fice (         
,managem5t & ,budget %all on an annual  

basis-- 7,a7 id5tify a li/ (            
high-priority ,f$]al programs = great]  
levels ( ov]sight & review--  7i7 9 :i* 
! highe/ doll> value or highe/ rate (   
improp] paym5ts occur2 or  7ii7 = :i*   
!re is a high] risk ( improp] paym5ts2 &
  7,b7 9 coord9ation ) ! executive ag5cy
 responsible = adm9i/]+ a high-priority 
program id5tifi$ "u subp>agraph 7,a71   
e/abli% annual t>gets & semi-annual or  
qu>t]ly actions = r$uc+ improp] paym5ts 
associat$ ) ! high-priority program4    
7#b7 ,report on high-priority improp]   
paym5ts  7,a7 ,9 g5]al ,subject to      
,f$]al privacy policies & to ! ext5t    
p]mitt$ by law1 ea* executive ag5cy ) a 
program id5tifi$ "u p>agraph 7#a77;,a7  
%all on an annual basis submit to !     
,inspector ,g5]al ( ! executive ag5cy & 
! ,(fice ( ,managem5t & ,budget1 & make 
available to ! public1 includ+ ?r\gh a  
website1 a report on t program4  7,b7   
,cont5ts ,ea* report submitt$ "u        
subp>agraph 7,a7-- 7i7 %all describe any
 action ! executive ag5cy--  7,i7 has   

tak5 or plans to take to recov] improp] 
paym5ts2 &  7,,ii7 int5ds to take to    
prev5t future improp] paym5ts2 &  7ii7  
%all n include-- 7,i7 any ref]rals !    
executive ag5cy made or anticipates mak+
 to ! ,dep>tm5t ( ,ju/ice2 or  7,,ii7   
any in=mation provid$ 9 connection ) a  
ref]ral describ$ 9 subclause 7,i74  7,c7
 ,public availability on c5tral website 
,! ,(fice ( ,managem5t & ,budget %all   
make ea* report submitt$ "u subp>agraph 
7,a7 available on a c5tral website4     
7,d7 ,availability ( in=mation to       
inspector g5]al ,subp>agraph 7,b77ii7   
%all n prohibit any ref]ral or in=mation
 be+ made available to an ,inspector    
,g5]al z o!rwise provid$ by law4  7,e7  
,assessm5t & recomm5dations ,!          
,inspector ,g5]al ( ea* executive ag5cy 
t submits a report "u subp>agraph 7,a7  
%all1 = ea* program ( ! executive ag5cy 
t is id5tifi$ "u p>agraph 7#a77;,a7--   
7i7 review-- 7,i7 ! assessm5t ( ! level 
( risk associat$ ) ! program & ! quality
 ( ! improp] paym5t e/imates &          

me?odology ( ! executive ag5cy relat+ to
 ! program2 &  7,,ii7 ! ov]sight or     
f9ancial controls to id5tify & prev5t   
improp] paym5ts "u ! program2 &  7ii7   
submit to ! appropriate au?oriz+ &      
appropriations committees ( ,congress   
recomm5dations1 :i* may be includ$ 9    
ano!r report submitt$ by ! ,inspector   
,g5]al to ,congress1 = modify+ any plans
 ( ! executive ag5cy relat+ to !        
program1 includ+ improvem5ts = improp]  
paym5ts det]m9ation & e/imation         
me?odology4  7,f7 ,annual meet+ ,n less 
frequ5tly ?an once e ye>1 ! head ( ea*  
executive ag5cy ) a program id5tifi$ "u 
p>agraph 7#a77;,a71 or a designee ( !   
head ( ! executive ag5cy1 %all meet ) ! 
,director ( ! ,(fice ( ,managem5t &     
,budget1 or a designee ( ! ,director1 to
 report on actions tak5 dur+ ! prec$+   
ye> & plann$ actions to prev5t improp]  
paym5ts4  7c7 ,e/imation ( improp]      
paym5ts  7#a7 ,e/imation ,) respect to  
ea* program & activity id5tifi$ "u      
subsection 7a77#a71 ! head ( ! relevant 

executive ag5cy %all--  7,a7 produce a  
/ati/ically valid e/imate1 or an e/imate
 t is o!rwise appropriate us+ a         
me?odology approv$ by ! ,director ( !   
,(fice ( ,managem5t & ,budget1 ( !      
improp] paym5ts made "u ! program or    
activity2 &  7,b7 include ! e/imates    
describ$ 9 subp>agraph 7,a7 9 !         
accompany+ mat]ials to ! annual f9ancial
 /atem5t ( ! executive ag5cy & z requir$
 9 applicable guidance ( ! ,(fice (     
,managem5t & ,budget4  7#b7 ,lack+ or   
insuffici5t docum5tation  7,a7 ,9 g5]al 
,= ! purpose ( produc+ an e/imate "u    
p>agraph 7#a71 :5 ! executive ag5cy _c  
det]m9e1 due to lack+ or insuffici5t    
docum5tation1 :e!r a paym5t is prop] or 
n1 ! paym5t %all be treat$ z an improp] 
paym5t4  7,b7 ,sep>ate report ,! head ( 
an executive ag5cy may report sep>ately 
on :at portion ( ! improp] paym5ts      
e/imate = a program or activity ( !     
executive ag5cy "u p>agraph 7#a7 is     
attributable to lack+ or insuffici5t    
docum5tation4  7d7 ,reports on actions  

,to r$uce improp] paym5ts ,) respect to 
any program or activity ( an executive  
ag5cy ) e/imat$ improp] paym5ts "u      
subsection 7c71 ! head ( ! executive    
ag5cy %all provide ) ! e/imate requir$  
"u subsection 7c7 a report on :at       
actions ! executive ag5cy is tak+ to    
r$uce improp] paym5ts1 includ+--  7#a7 a
 description ( ! causes ( ! improp]     
paym5ts1 actions plann$ or tak5 to      
correct ^? causes1 & ! plann$ or actual 
completion date ( ! actions tak5 to     
address ^? causes2  7#b7 9 ord] to r$uce
 improp] paym5ts to a level bel[ :i*    
fur!r exp5ditures to r$uce improp]      
paym5ts w\ld co/ m ?an ! am\nt ^?       
exp5ditures w\ld save 9 prev5t$ or      
recov]$ improp] paym5ts1 a /atem5t (    
:e!r ! executive ag5cy has :at is ne$$ )
 respect to--  7,a7 int]nal controls2   
7,b7 human capital2 &  7,c7 in=mation   
sy/ems & o!r infra/ructure2  7#c7 if !  
executive ag5cy does n h suffici5t      
res\rces to e/abli% & ma9ta9 effective  
int]nal controls z describ$ 9 p>agraph  

7#b77;,a71 a description ( ! res\rces ! 
executive ag5cy has reque/$ 9 ! budget  
submission ( ! executive ag5cy to       
e/abli% & ma9ta9 ^? int]nal controls2   
7#d7 program-specific &                 
activity-specific improp] paym5ts       
r$uction t>gets t h be5 approv$ by !    
,director ( ! ,(fice ( ,managem5t &     
,budget2  7#e7 a description ( ! /eps ! 
executive ag5cy has tak5 to ensure t    
executive ag5cy manag]s1 programs1 &1   
:]e appropriate1 ,/ates & local         
gov]nm5ts are held acc\ntable ?r\gh     
annual p]=mance appraisal crit]ia =--   
7,a7 meet+ applicable improp] paym5ts   
r$uction t>gets2 &  7,b7 e/abli%+ &     
ma9ta9+ suffici5t int]nal controls1     
includ+ an appropriate control          
environm5t1 t effectively--  7i7 prev5t 
improp] paym5ts f be+ made2 &  7ii7     
promptly detect & recov] improp] paym5ts
 t are made2 &  7#f7 a description ( h[ 
! level ( plann$ or complet$ actions by 
! executive ag5cy to address ! causes ( 
! improp] paym5ts mat*es ! level (      

improp] paym5ts1 includ+ a breakd[n by  
category ( improp] paym5t & specific    
timel9es = completion ( ^? actions4  7e7
 ,reports on actions ,to recov] improp] 
paym5ts ,) respect to improp] paym5ts   
id5tifi$ 9 a recov]y audit1 ! head ( !  
executive ag5cy %all provide ) ! e/imate
 requir$ "u subsection 7c7 a report on  
all actions ! executive ag5cy is tak+ to
 recov] ! improp] paym5ts1 includ+--    
7#a7 a discussion ( ! me?ods us$ by !   
executive ag5cy to recov] improp]       
paym5ts2  7#b7 ! am\nts recov]$1 out/&+1
 & det]m9$ to n be collectable1 includ+ 
! p]c5t ^? am\nts repres5t ( ! total    
improp] paym5ts ( ! executive ag5cy2    
7#c7 if a det]m9ation has be5 made t    
c]ta9 improp] paym5ts are n collectable1
 a ju/ification ( t det]m9ation2  7#d7  
an ag+ s*$ule ( ! am\nts out/&+2  7#e7 a
 summ>y ( h[ recov]$ am\nts h be5       
dispos$ (2  7#f7 a discussion ( any     
conditions giv+ rise to improp] paym5ts 
& h[ ^? conditions are be+ resolv$2 &   
7#g7 if ! executive ag5cy has det]m9$ "u

 subsection 7i7 t p]=m+ recov]y audits =
 any applicable program or activity is n
 co/-effective1 a ju/ification = t      
det]m9ation4  7f7 ,gov]nm5twide report+ 
( improp] paym5ts & actions ,to recov]  
improp] paym5ts  7#a7 ,report ,ea*      
fiscal ye>1 ! ,director ( ! ,(fice (    
,managem5t & ,budget %all submit a      
report ) respect to ! prec$+ fiscal ye> 
on actions t executive ag5cies h tak5 to
 report in=mation reg>d+ improp] paym5ts
 & actions to recov] improp] paym5ts    
to--  7,a7 ! ,committee on ,homel&      
,security & ,gov]nm5tal ,affairs ( !    
,s5ate2  7,b7 ! ,committee on ,ov]sight 
& ,re=m ( ! ,h\se ( ,repres5tatives2 &  
7,c7 ! ,comptroll] ,g5]al ( ! ,unit$    
,/ates4  7#b7 ,cont5ts ,ea* report      
requir$ "u p>agraph 7#a7 %all include-- 
7,a7 a summ>y ( ! reports ( ea*         
executive ag5cy on improp] paym5ts &    
recov]y actions submitt$ "u ?is section2
  7,b7 an id5tification ( ! compliance  
/atus ( ea* executive ag5cy1 z det]m9$  
by ! ,inspector ,g5]al ( ! executive    

ag5cy "u section #ccec1 to :i* ?is      
section applies2  7,c7 ,gov]nm5twide    
improp] paym5t r$uction t>gets2  7,d7 a 
,gov]nm5twide e/imate ( improp] paym5ts2
 &  7,e7 a discussion ( progress made   
t[>ds meet+ ,gov]nm5twide improp] paym5t
 r$uction t>gets4  7g7 ,guidance by !   
,(fice ( ,managem5t & ,budget  7#a7 ,9  
g5]al ,n lat] ?an #a ye> aft] ! date (  
enactm5t ( ?is section1 ! ,director ( ! 
,(fice ( ,managem5t & ,budget %all      
prescribe guidance = executive ag5cies  
to implem5t ! requirem5ts ( ?is section1
 :i* %all n include any exemptions to ^?
 requirem5ts t are n specifically       
au?oriz$ by ?is section4  7#b7 ,cont5ts 
,! guidance "u p>agraph 7#a7 %all       
prescribe--  7,a7 ! =m ( ! reports on   
actions to r$uce improp] paym5ts1       
recov]y actions1 & ,gov]nm5twide        
report+2 &  7,b7 /rategies = address+   
risks & e/abli%+ appropriate prepaym5t &
 po/paym5t int]nal controls4  7h7       
,det]m9ations ( ag5cy read9ess = op9ion 
on int]nal control ,! crit]ia requir$ to

 be develop$ "u section #b7;g7 ( !      
,improp] ,paym5ts ,elim9ation & ,recov]y
 ,act ( #bjaj1 z 9 effect on ! day be=e 
! date ( enactm5t ( ?is section--  7#a7 
%all cont9ue to be 9 effect on & aft] ! 
date ( enactm5t ( ?is section2 &  7#b7  
may be modifi$ z det]m9$ appropriate by 
! ,director ( ! ,(fice ( ,managem5t &   
,budget4  7i7 ,recov]y audits  7#a7 ,9  
g5]al  7,a7 ,conduct ( audits ,except z 
provid$ "u p>agraph 7#c7 & if n         
prohibit$ "u any o!r provision ( law1 ! 
head ( ea* executive ag5cy %all conduct 
recov]y audits ) respect to ea* program 
& activity ( ! executive ag5cy t exp5ds 
#a1jjj1jjj or m annually if conduct+ !  
audits w\ld be co/ effective4  7,b7     
,proc$ures ,9 conduct+ a recov]y audit  
"u ?is subsection1 ! head ( an executive
 ag5cy-- 7i7 %all give priority to ! mo/
 rec5t paym5ts & to paym5ts made 9 any  
program id5tifi$ z susceptible to       
significant improp] paym5ts "u          
subsection 7a72  7ii7 %all implem5t ?is 
subsection 9 a mann] design$ to ensure !

 greate/ f9ancial b5efit to ! ,f$]al    
,gov]nm5t2 &  7iii7 may conduct !       
recov]y audit directly1 by us+ o!r      
dep>tm5ts & ag5cies ( ! ,unit$ ,/ates1  
or by procur+ p]=mance ( recov]y audits 
by private sector s\rces by contract1   
subject to ! availability (             
appropriations1 or by any comb9ation    
!re(4  7,c7 ,recov]y audit contracts ,) 
respect to a recov]y audit procur$ by an
 executive ag5cy by contract-- 7i7      
subject to subp>agraph 7,b77iii71 &     
except to ! ext5t su* actions are       
outside ! au?ority ( ! executive ag5cy  
"u section #gajc ( title #da1 ! head ( !
 executive ag5cy may au?orize !         
contractor to--  7,i7 notify entities1  
includ+ individuals1 ( pot5tial         
ov]paym5ts made to ^? entities2  7,,ii7 
respond to que/ions conc]n+ pot5tial    
ov]paym5ts2 &  7,,iii7 take o!r         
adm9i/rative actions ) respect to an    
ov]paym5t claim made or to be made by ! 
executive ag5cy2 &  7ii7 ! contractor   
%all n h ! au?ority to make a f9al      

det]m9ation relat+ to :e!r any ov]paym5t
 occurr$ or :e!r to compromise1 settle1 
or t]m9ate an ov]paym5t claim4  7,d7    
,contract t]ms & conditions  7i7 ,9     
g5]al ,! executive ag5cy %all include 9 
ea* contract = procurem5t ( p]=mance ( a
 recov]y audit a requirem5t t !         
contractor %all--  7,i7 provide to !    
executive ag5cy p]iodic reports on      
conditions giv+ rise to ov]paym5ts      
id5tifi$ by ! contractor & any          
recomm5dations on h[ to mitigate ^?     
conditions2  7,,ii7 notify ! executive  
ag5cy ( any ov]paym5ts id5tifi$ by !    
contractor p]ta9+ to ! executive ag5cy  
or to any o!r executive ag5cy t are     
beyond ! scope ( ! contract2 &  7,,iii7 
report to ! executive ag5cy cr$ible     
evid5ce ( fraud or vuln]abilities to    
fraud & conduct appropriate tra9+ (     
p]sonnel ( ! contractor on id5tification
 ( fraud4  7ii7 ,reports on actions tak5
 ,ea* executive ag5cy %all1 on an annual
 basis1 include 9 annual f9ancial       
/atem5t ( ! executive ag5cy a report on 

actions tak5 by ! executive ag5cy dur+ !
 prec$+ fiscal ye> to address !         
recomm5dations describ$ 9 clause        
7i77,i74  7,e7 ,ag5cy action foll[+     
notification ,ea* executive ag5cy %all--
 7i7 take prompt & appropriate action 9 
response to a report or notification by 
a contractor "u subclause 7,i7 or 7,,ii7
 ( subp>agraph 7,d77i7 to collect an    
ov]paym5t2 &  7ii7 =w>d to o!r executive
 ag5cies any in=mation t applies to t   
executive ag5cy4  7#b7 ,disposition (   
am\nts recov]$  7,a7 ,9 g5]al ,am\nts   
collect$ by executive ag5cies ea* fiscal
 ye> ?r\gh recov]y audits %all be treat$
 9 accordance ) ?is p>agraph4  7,b7     
,di/ribution ,! head ( an executive     
ag5cy %all det]m9e ! di/ribution (      
collect$ am\nts describ$ 9 subp>agraph  
7,a71 less am\nts ne$$ to fulfill !     
purposes ( section #cefb7;a7 ( ?is      
title1 9 accordance ) subp>agraphs 7,c71
 7,d71 & 7,e74  7,c7 ,use = f9ancial    
managem5t improvem5t program ,n m ?an   
#be p]c5t ( ! am\nts collect$ by an     

executive ag5cy ?r\gh recov]y audits--  
7i7 %all be available to ! head ( !     
executive ag5cy to c>ry out ! f9ancial  
managem5t improvem5t program ( !        
executive ag5cy "u p>agraph 7#c72  7ii7 
may be cr$it$1 if applicable1 = !       
purpose describ$ 9 clause 7i7 by ! head 
( an executive ag5cy to any executive   
ag5cy appropriations & funds t are      
available = obligation at ! "t (        
collection2 &  7iii7 %all be us$ to     
supplem5t & n supplant any o!r am\nts   
available = ! purpose describ$ 9 clause 
7i7 & %all rema9 available until exp5d$4
  7,d7 ,use = orig9al purpose ,n m ?an  
#be p]c5t ( ! am\nts collect$ by an     
executive ag5cy ?r\gh recov]y audits--  
7i7 %all be cr$it$ to ! appropriation or
 fund1 if any1 available = obligation at
 ! "t ( collection = ! same g5]al       
purposes z ! appropriation or fund f :i*
 ! ov]paym5t 0 made2  7ii7 %all rema9   
available = ! same p]iod & purposes z ! 
appropriation or fund to :i* cr$it$2 &  
7iii7 if ! appropriation f :i* an       

ov]paym5t 0 made has expir$-- 7,i7 9 !  
case ( recov]ies ( ov]paym5ts t are made
 f a tru/ or special fund acc\nt1 %all  
rev]t to t acc\nt2 &  7,,ii7 9 ! case ( 
o!r recov]ies ( ov]paym5ts-- 7aa7 =     
am\nts t are recov]$ m ?an #e fiscal    
ye>s f ! la/ fiscal ye> 9 :i* ! funds 7 
available = obligation1 %all be deposit$
 9 ! ,treasury z miscellane\s receipts2 
&  7bb7 = o!r am\nts1 %all be newly     
available = ! same "t p]iod z ! funds 7 
orig9ally available = obligation4  7,e7 
,use = inspector g5]al activities ,n m  
?an #e p]c5t ( ! am\nts collect$ by an  
executive ag5cy ?r\gh recov]y audits--  
7i7 %all be available to ! ,inspector   
,g5]al ( t executive ag5cy =--  7,i7 !  
,inspector ,g5]al to c>ry out ?is ,act2 
or  7,,ii7 any o!r activities ( !       
,inspector ,g5]al relat+ to inve/igat+  
improp] paym5ts or audit+ int]nal       
controls associat$ ) paym5ts2 &  7ii7   
%all rema9 available = ! same p]iod &   
purposes z ! appropriation or fund to   
:i* cr$it$4  7,f7 ,rema9d] ,am\nts      

collect$ t are n appli$ 9 accordance )  
subp>agraph 7,b71 7,c71 7,d71 or 7,e7   
%all be deposit$ 9 ! ,treasury z        
miscellane\s receipts1 except t 9 ! case
 ( recov]ies ( ov]paym5ts t are made f  
tru/ or special fund acc\nts1 ^? am\nts 
%all rev]t to ^? acc\nts4  7,g7         
,discretion>y am\nts ,?is p>agraph %all 
apply only to recov]ies ( ov]paym5ts t  
are made f discretion>y appropriations1 
z def9$ 9 section #bej7;c77#g7 ( !      
,balanc$ ,budget & ,em]g5cy ,deficit    
,control ,act ( #aihe 7#b ,u4,s4,c4     
#ijj7;c77#g771 & %all n apply to        
recov]ies ( ov]paym5ts t are made f     
discretion>y am\nts t 7 appropriat$ be=e
 ! date ( enactm5t ( ! ,improp] ,paym5ts
 ,elim9ation & ,recov]y ,act ( #bjaj1 z 
9 effect on ! day be=e ! date ( enactm5t
 ( ?is section4  7,h7 ,application ,?is 
p>agraph %all n apply to ! recov]y ( an 
ov]paym5t if ! appropriation f :i* !    
ov]paym5t 0 made has n expir$4  7#c7    
,f9ancial managem5t improvem5t program  
7,a7 ,requirem5t ,! head ( ea* executive

 ag5cy %all conduct a f9ancial managem5t
 improvem5t program consi/5t ) rules    
prescrib$ by ! ,director ( ! ,(fice (   
,managem5t & ,budget4  7,b7 ,program    
features ,9 conduct+ a program describ$ 
9 subp>agraph 7,a71 ! head ( an         
executive ag5cy-- 7i7 %all1 z ! fir/    
priority ( ! program1 address problems t
 contribute directly to executive ag5cy 
improp] paym5ts2 &  7ii7 may seek to    
r$uce errors & wa/e 9 o!r executive     
ag5cy programs & op]ations4  7#d7       
,privacy protections ,any nongov]nm5tal 
entity t1 9 ! c\rse ( recov]y audit+ or 
recov]y activity "u ?is subsection1     
obta9s in=mation t id5tifies an         
individual or ) respect to :i* !re is a 
reasonable basis to believe t !         
in=mation c be us$ to id5tify an        
individual1 may n disclose ! in=mation =
 any purpose o!r ?an ! recov]y audit+ or
 recov]y activity & gov]nm5tal ov]sight 
( ! activity1 unless disclosure = t o!r 
purpose is au?oriz$ by ! individual to !
 executive ag5cy t contract$ = !        

p]=mance ( ! recov]y audit+ or recov]y  
activity4  7#e7 ,rule ( con/ruction     
,except z provid$ "u p>agraph 7#d71 no?+
 9 ?is subsection %all be con/ru$ z     
t]m9at+ or 9 any way limit+ au?orities t
 are o!rwise available to executive     
ag5cies "u exi/+ provisions ( law to    
recov] improp] paym5ts & use recov]$    
am\nts4  #ccec4 ,compliance  7a7 ,annual
 compliance report by ,inspectors ,g5]al
 ( executive ag5cies  7#a7 ,9 g5]al ,ea*
 fiscal ye>1 ! ,inspector ,g5]al ( ea*  
executive ag5cy %all-- 7,a7 det]m9e :e!r
 ! executive ag5cy is 9 compliance2 &   
7,b7 submit a report on ! det]m9ation   
made "u subp>agraph 7,a7 to-- 7i7 ! head
 ( ! executive ag5cy2  7ii7 ! ,committee
 on ,homel& ,security & ,gov]nm5tal     
,affairs ( ! ,s5ate2  7iii7 ! ,committee
 on ,ov]sight & ,re=m ( ! ,h\se (       
,repres5tatives2 &  7iv7 ! ,comptroll]  
,g5]al ( ! ,unit$ ,/ates4  7#b7         
,developm5t or use ( a c5tral website ,!
 ,c\ncil ( ! ,inspectors ,g5]al on      
,integrity & ,effici5cy 79 ?is          

subsection ref]r$ to z ! ,c\ncil7 %all  
develop a public c5tral website1 or make
 use ( a public c5tral website 9 exi/5ce
 on ! date ( enactm5t ( ?is section1 to 
conta9 individual compliance det]m9ation
 reports issu$ by ,inspectors ,g5]al "u 
p>agraph 7#a77;,b7 & su* additional     
in=mation z det]m9$ by ! ,c\ncil4  7#c7 
,,omb guidance ,n lat] ?an #ahj days    
aft] ! date ( enactm5t ( ?is section1 ! 
,director ( ! ,(fice ( ,managem5t &     
,budget1 9 consultation ) ! ,c\ncil & ) 
consid]ation giv5 to ! available        
res\rces & indep5d5ce ( individual      
,(fices ( ,inspectors ,g5]al1 %all      
develop & promulgate guidance = !       
compliance det]m9ation reports issu$ by 
! ,inspectors ,g5]al "u p>agraph        
7#a77;,b71 :i* %all require t--  7,a7 ! 
report+ =mat us$ by ! ,inspectors ,g5]al
 is consi/5t2  7,b7 ,inspectors ,g5]al  
evaluate & take into acc\nt ! adequacy (
 executive ag5cy risk assessm5ts1       
improp] paym5t e/imates me?odology1 &   
executive ag5cy action plans to address 

! causes ( improp] paym5ts2  7,c7       
,inspectors ,g5]al take into acc\nt :e!r
 ! executive ag5cy has correctly        
id5tifi$ ! causes ( improp] paym5ts &   
:e!r ! actions ( ! executive ag5cy to   
address ^? causes are adequate &        
effective2  7,d7 ,inspectors ,g5]al     
evaluate ! adequacy ( executive ag5cy   
action plans on h[ ! executive ag5cy    
addresses ! causes ( improp] paym5ts2 & 
7,e7 z "p ( ! report1 ,inspectors ,g5]al
 include an evaluation ( executive ag5cy
 ef=ts to prev5t & r$uce improp] paym5ts
 & any recomm5dations = actions to fur!r
 improve t prev5tion & r$uction4  7#d7  
,,cigie guidance ,n lat] ?an #ahj days  
aft] ! date ( enactm5t ( ?is section1 ! 
,c\ncil %all1 ) consid]ation giv5 to !  
available res\rces & indep5d5ce (       
individual ,(fices ( ,inspectors ,g5]al1
 develop & promulgate guidance t        
specifies proc$ures = compliance        
det]m9ations made by ! ,inspectors      
,g5]al "u p>agraph 7#a77;,a71 :i* %all  
describe proc$ures = ,inspectors        

,g5]al--  7,a7 to make ! det]m9ations   
consi/5t reg>d+ compliance2 &  7,b7 to  
evaluate-- 7i7 = compliance ) !         
requirem5t describ$ 9 section           
#ccea7b77;,b71 ! risk assessm5t         
me?odology ( ! executive ag5cy1 includ+ 
:e!r ! audits1 exam9ations1 & legal     
actions ( ! ,inspector ,g5]al indicate a
 high] risk ( improp] paym5ts or actual 
improp] paym5ts t 7 n includ$ 9 ! risk  
assessm5ts ( ! executive ag5cy conduct$ 
"u section #cceb7;a72  7ii7 = compliance
 ) ! requirem5t describ$ 9 section      
#ccea7b77;,c71 ! accuracy ( ! rate      
e/imates & :e!r ! sampl+ & e/imation    
plan us$ is appropriate giv5 program    
*>act]i/ics2  7iii7 = compliance ) !    
requirem5t describ$ 9 section           
#ccea7b77;,d71 ! corrective action plans
 & :e!r ! plans are adequate & focus$ on
 ! true causes ( improp] paym5ts1       
includ+ :e!r ! corrective action plans  
are--  7,i7 r$uc+ improp] paym5ts2      
7,,ii7 effectively implem5t$2 &  7,,iii7
 prioritiz$ )9 ! executive ag5cy2  7iv7 

! adequacy ( executive ag5cy action     
plans to address ! causes ( improp]     
paym5ts2  7v7 executive ag5cy ef=ts to  
prev5t & r$uce improp] paym5ts1 & any   
recomm5dations = actions to fur!r       
improve2 &  7vi7 :e!r an executive ag5cy
 has publi%$ an annual f9ancial /atem5t 
9 accordance ) ! requirem5t describ$ 9  
section #ccea7b77;,a74  7b7 ,rem$iation 
7#a7 ,noncompliance  7,a7 ,9 g5]al ,if  
an executive ag5cy is det]m9$ by !      
,inspector ,g5]al ( t executive ag5cy n 
to be 9 compliance "u subsection 7a7 9 a
 fiscal ye> ) respect to a program or   
activity1 ! head ( ! executive ag5cy    
%all submit to ! appropriate au?oriz+ & 
appropriations committees ( ,congress a 
plan describ+ ! actions t ! executive   
ag5cy w take to come into compliance4   
7,b7 ,plan ,! plan describ$ 9           
subp>agraph 7,a7 %all include-- 7i7     
measurable mile/ones to be accompli%$ 9 
ord] to a*ieve compliance = ea* program 
or activity2  7ii7 ! designation ( a    
s5ior executive ag5cy (ficial :o %all be

 acc\ntable = ! progress ( ! executive  
ag5cy 9 com+ into compliance = ea*      
program or activity2 &  7iii7 !         
e/abli%m5t ( an acc\ntability me*anism1 
su* z a p]=mance agreem5t1 ) appropriate
 inc5tives & consequ5ces ti$ to !       
success ( ! (ficial designat$ "u clause 
7ii7 9 lead+ ! ef=ts ( ! executive ag5cy
 to come into compliance = ea* program  
or activity4  7#b7 ,noncompliance = #b  
fiscal ye>s  7,a7 ,9 g5]al ,if an       
executive ag5cy is det]m9$ by !         
,inspector ,g5]al ( t executive ag5cy n 
to be 9 compliance "u subsection 7a7 =  
#b consecutive fiscal ye>s = ! same     
program or activity1 ! executive ag5cy  
%all propose to ! ,director ( ! ,(fice (
 ,managem5t & ,budget additional program
 integrity proposals t w\ld help !      
executive ag5cy come into compliance4   
7,b7 ,additional fund+  7i7 ,9 g5]al ,if
 ! ,director ( ! ,(fice ( ,managem5t &  
,budget det]m9es t additional fund+ w\ld
 help an executive ag5cy describ$ 9     
subp>agraph 7,a7 come into compliance1 !

 head ( ! executive ag5cy %all obligate 
additional fund+1 9 an am\nt det]m9$ by 
! ,director1 to int5sifi$ compliance    
ef=ts4  7ii7 ,reprogramm+ or transf]    
au?ority ,9 provid+ additional fund+ "u 
clause 7i7-- 7,i7 ! head ( an executive 
ag5cy %all use any reprogramm+ or       
transf] au?ority available to !         
executive ag5cy2 &  7,,ii7 if aft]      
ex]cis+ ! reprogramm+ or transf]        
au?ority describ$ 9 subclause 7,i71     
additional fund+ is necess>y to obligate
 ! full level ( fund+ det]m9$ by !      
,director ( ! ,(fice ( ,managem5t &     
,budget "u clause 7i71 ! executive ag5cy
 %all submit a reque/ to ,congress =    
additional reprogramm+ or transf]       
au?ority4  7#c7 ,reau?orization &       
/atutory proposals ,if an executive     
ag5cy is det]m9$ by ! ,inspector ,g5]al 
( t executive ag5cy n to be 9 compliance
 "u subsection 7a7 = #c consecutive     
fiscal ye>s = ! same program or         
activity1 ! head ( ! executive ag5cy    
%all1 n lat] ?an #cj days aft] ! date ( 

t det]m9ation1 submit to ! appropriate  
au?oriz+ & appropriations committees (  
,congress & ! ,comptroll] ,g5]al ( !    
,unit$ ,/ates--  7,a7 7i7 reau?orization
 proposals = ea* program or activity t  
has n be5 9 compliance = #c or m        
consecutive fiscal ye>s2 &  7ii7 propos$
 /atutory *anges necess>y to br+ !      
program or activity into compliance2 or 
7,b7 if ! head ( ! executive ag5cy      
det]m9es t clauses 7i7 & 7ii7 (         
subp>agraph 7,a7 w n br+ ! program or   
activity into compliance1 a description 
( ! actions t ! executive ag5cy is      
und]tak+ to br+ ! program or activity   
into compliance & a timel9e ( :5 !      
compliance w be a*iev$4  7#d7 ,plan &   
timel9e = compliance ,if an executive   
ag5cy is det]m9$ by ! ,inspector ,g5]al 
( t executive ag5cy n to be 9 compliance
 "u subsection 7a7 = #d or m consecutive
 fiscal ye>s = ! same program or        
activity1 ! head ( ! executive ag5cy    
%all1 n lat] ?an #cj days aft] su*      
det]m9ation1 submit to ! appropriate    

au?oriz+ & appropriations committees (  
,congress a report t includes--  7,a7 ! 
activities tak5 to comply ) !           
requirem5ts = #a1 #b1 #c1 #d1 or m ye>s 
( noncompliance2  7,b7 a description (  
any requirem5ts t 7 fulfill$ = #a1 #b1  
or #c consecutive ye>s ( noncompliance t
 are /ill relevant & be+ pursu$ z a     
means to br+ ! program or activity into 
compliance & prev5t & r$uce improp]     
paym5ts2  7,c7 a description ( any new  
corrective actions2 &  7,d7 a timel9e = 
:5 ! program or activity w a*ieve       
compliance bas$ on ! actions describ$ )9
 ! report4  7#e7 ,annual report ,ea*    
executive ag5cy %all submit to !        
appropriate au?oriz+ & appropriations   
committees ( ,congress & ! ,comptroll]  
,g5]al ( ! ,unit$ ,/ates--  7,a7 a li/ (
 ea* program or activity t 0 det]m9$ to 
n be 9 compliance "u p>agraph 7#a71     
7#b71 7#c71 or 7#d72 &  7,b7 actions t  
are plann$ to br+ ! program or activity 
into compliance4  7c7 ,compliance       
en=cem5t pilot programs ,! ,director ( !

 ,(fice ( ,managem5t & ,budget may      
e/abli% #a or m pilot programs t %all   
te/ pot5tial acc\ntability me*anisms )  
appropriate inc5tives & consequ5ces ti$ 
to success 9 ensur+ compliance ) ?is    
section & elim9at+ improp] paym5ts4  7d7
 ,improv$ e/imates guidance ,! guidance 
requir$ to be provid$ "u section #c7;b7 
( ! ,improp] ,paym5ts ,elim9ation &     
,recov]y ,improvem5t ,act ( #bjab1 z 9  
effect on ! day be=e ! date ( enactm5t (
 ?is section--  7#a7 %all cont9ue to be 
9 effect on & aft] ! date ( enactm5t (  
?is section2 &  7#b7 may be modifi$ z   
det]m9$ appropriate by ! ,director ( !  
,(fice ( ,managem5t & ,budget4  #cced4  
,d ,n ,pay ,initiative  7a7 ,prepaym5t &
 preaw>d proc$ures  7#a7 ,9 g5]al ,ea*  
executive ag5cy %all review prepaym5t & 
preaw>d proc$ures & ensure t a ?or\gh   
review ( available databases ) relevant 
in=mation on eligibility occurs to      
det]m9e program or aw>d eligibility &   
prev5t improp] paym5ts be=e ! release ( 
any ,f$]al funds4  7#b7 ,databases ,at a

 m9imum & be=e issu+ any paym5t or aw>d1
 ea* executive ag5cy %all review z      
appropriate ! foll[+ databases to v]ify 
eligibility ( ! paym5t & aw>d3  7,a7 ,! 
dea? records ma9ta9$ by ! ,commission] (
 ,social ,security4  7,b7 ,! ,sy/em =   
,aw>d ,managem5t ,exclusion ,records1   
=m]ly kn[n z ! ,exclud$ ,p>ties ,li/    
,sy/em1 ( ! ,g5]al ,s]vices             
,adm9i/ration4  7,c7 ,! ,debt ,*eck     
,database ( ! ,dep>tm5t ( ! ,treasury4  
7,d7 ,! ,cr$it ,al]t ,sy/em or ,cr$it   
,al]t ,int]active ,voice ,response      
,sy/em ( ! ,dep>tm5t ( ,h\s+ & ,urban   
,developm5t4  7,e7 ,! ,li/ ( ,exclud$   
,individuals_/,entities ( ! ,(fice (    
,inspector ,g5]al ( ! ,dep>tm5t ( ,heal?
 & ,human ,s]vices4  7,f7 ,in=mation    
reg>d+ inc>c]at$ individuals ma9ta9$ by 
! ,commission] ( ,social ,security "u   
sections #bjb7x7 & #afaa7;e7 ( ! ,social
 ,security ,act 7#db ,u4,s4,c4 #djb7x71 
#achb7;e774  7b7 ,d n pay initiative    
7#a7 ,9 g5]al ,!re is ! ,d ,n ,pay      
,initiative1 :i* %all include-- 7,a7 use

 ( ! databases describ$ 9 subsection    
7a77#b72 &  7,b7 use ( o!r databases    
designat$ by ! ,director ( ! ,(fice (   
,managem5t & ,budget1 or ! designee ( ! 
,director1 9 consultation ) executive   
ag5cies & 9 accordance ) p>agraph 7#b74 
7#b7 ,o!r databases ,9 mak+ designations
 ( o!r databases "u p>agraph 7#a77;,b71 
! ,director ( ! ,(fice ( ,managem5t &   
,budget1 or ! head ( any executive ag5cy
 designat$ by ! ,director1 %all--  7,a7 
consid] any database t sub/antially     
assi/s 9 prev5t+ improp] paym5ts2 &     
7,b7 provide public notice & an         
opportunity = comm5t be=e designat+ a   
database "u p>agraph 7#a77;,b74  7#c7   
,access & review  7,a7 ,9 g5]al ,=      
purposes ( id5tify+ & prev5t+ improp]   
paym5ts1 ea* executive ag5cy %all h     
access to1 & use (1 ! ,d ,n ,pay        
,initiative to v]ify paym5t or aw>d     
eligibility 9 accordance ) subsection   
7a74  7,b7 ,mat*+ programs  7i7 ,9 g5]al
 ,! head ( ! ag5cy op]at+ ! ,work+      
,sy/em may1 9 consultation ) ! ,(fice ( 

,managem5t & ,budget1 waive !           
requirem5ts ( section #eeb;a7o7 ( title 
#e 9 any case or class ( cases = comput]
 mat*+ activities conduct$ "u ?is       
section4  7ii7 ,guidance ,! ,director ( 
! ,(fice ( ,managem5t & ,budget may     
issue guidance t e/abli%es requirem5ts  
gov]n+ waiv]s "u clause 7i74  7,c7 ,o!r 
entities ,ea* ,/ate & any contractor1   
subcontractor1 or ag5t ( a ,/ate1       
includ+ a ,/ate auditor or ,/ate program
 responsible = r$uc+ improp] paym5ts ( a
 f$]ally fund$ ,/ate-adm9i/]$ program1 &
 ! judicial & legislative bran*es ( !   
,unit$ ,/ates1 z def9$ 9 p>agraphs 7#b7 
& 7#c71 respectively1 ( section #bjb7;e7
 ( title #ah1 %all h access to1 & use (1
 ! ,d ,n ,pay ,initiative = ! purpose ( 
v]ify+ paym5t or aw>d eligibility =     
paym5ts4  7,d7 ,consi/5cy ) ,privacy    
,act ( #aigd ,to ensure consi/5cy ) !   
pr9ciples ( section #eeb;a ( title #e   
7commonly kn[n z ! ,privacy ,act (      
#aigd71 ! ,director ( ! ,(fice (        
,managem5t & ,budget may issue guidance 

t e/abli%es privacy & o!r requirem5ts t 
%all be incorporat$ into ,d ,n ,pay     
,initiative access agreem5ts ) ,/ates1  
includ+ any contractor1 subcontractor1  
or ag5t ( a ,/ate1 & ! judicial &       
legislative bran*es ( ! ,unit$ ,/ates1 z
 def9$ 9 p>agraphs 7#b7 & 7#c71         
respectively1 ( section #bjb7;e7 ( title
 #ah4  7#d7 ,paym5t o!rwise requir$ ,:5 
us+ ! ,d ,n ,pay ,initiative1 an        
executive ag5cy %all recognize t !re may
 be circum/ances "u :i* ! law requires a
 paym5t or aw>d to be made to a         
recipi5t1 reg>dless ( :e!r t recipi5t is
 id5tifi$ z pot5tially ineligible "u !  
,d ,n ,pay ,initiative4  7#e7 ,annual   
report ,! ,director ( ! ,(fice (        
,managem5t & ,budget %all submit to     
,congress an annual report1 :i* may be  
includ$ z "p ( ano!r report submitt$ to 
,congress by ! ,director1 reg>d+ !      
op]ation ( ! ,d ,n ,pay ,initiative1 :i*
 %all--  7,a7 include an evaluation (   
:e!r ! ,d ,n ,pay ,initiative has r$uc$ 
improp] paym5ts or improp] aw>ds2 &     

7,b7 provide ! frequ5cy ( corrections or
 id5tification ( incorrect in=mation4   
7c7 ,initial work+ sy/em ,! work+ sy/em 
requir$ to be e/abli%$ "u section #e7;d7
 ( ! ,improp] ,paym5ts ,elim9ation &    
,recov]y ,improvem5t ,act ( #bjab1 z 9  
effect on ! day be=e ! date ( enactm5t (
 ?is section--  7#a7 %all cont9ue to be 
9 effect on & aft] ! date ( enactm5t (  
?is section2 &  7#b7 %all require ea*   
executive ag5cy to review all paym5ts & 
aw>ds = all programs & activities ( t   
executive ag5cy ?r\gh ! work+ sy/em4    
7d7 ,facilitat+ data access by ,f$]al   
ag5cies & (fices ( ,inspectors ,g5]al = 
purposes ( program integrity  7#a7      
,comput] mat*+ by executive ag5cies =   
purposes ( inve/igation & prev5tion (   
improp] paym5ts & fraud  7,a7 ,9 g5]al  
,except z provid$ 9 ?is p>agraph1 9     
accordance ) section #eeb;a ( title #e  
7commonly kn[n z ! ,privacy ,act (      
#aigd71 ! head ( ea* executive ag5cy may
 ent] into comput] mat*+ agreem5ts ) o!r
 heads ( executive ag5cies t all[ ongo+ 

data mat*+1 :i* %all include automat$   
data mat*+1 9 ord] to assi/ 9 !         
detection & prev5tion ( improp] paym5ts4
  7,b7 ,review ,n lat] ?an #fj days aft]
 ! date on :i* a proposal = an agreem5t 
"u subp>agraph 7,a7 has be5 pres5t$ to a
 ,data ,integrity ,bo>d e/abli%$ "u     
section #eeb;a7u7 ( title #e =          
consid]ation1 ! ,data ,integrity ,bo>d  
%all respond to ! proposal4  7,c7       
,t]m9ation date ,an agreem5t describ$ 9 
subp>agraph 7,a7-- 7i7 %all h a         
t]m9ation date ( less ?an #c ye>s2 &    
7ii7 dur+ ! #c-mon? p]iod end+ on ! date
 on :i* ! agreem5t is s*$ul$ to t]m9ate1
 may be r5ew$ by ! executive ag5cies    
ent]+ ! agreem5t = n m ?an #c ye>s4     
7,d7 ,multiple ag5cies ,= purposes ( ?is
 p>agraph1 section #eeb;a7o77#a7 ( title
 #e %all be appli$ by sub/itut+ betwe5 !
 s\rce ag5cy & ! recipi5t ag5cy or      
non-,f$]al ag5cy or an agreem5t gov]n+  
multiple ag5cies = betwe5 ! s\rce ag5cy 
& ! recipi5t ag5cy or non-,f$]al ag5cy 9
 ! matt] prec$+ subp>agraph 7,a74  7,e7 

,co/-b5efit analysis ,a ju/ification "u 
section #eeb;a7o77#a77;,b7 ( title #e   
relat+ to an agreem5t "u subp>agraph    
7,a7 is n requir$ to conta9 a specific  
e/imate ( any sav+s "u ! comput] mat*+  
agreem5t4  7#b7 ,guidance & proc$ures by
 ! (fice ( managem5t & budget ,!        
guidance1 rules1 & proc$ures requir$ to 
be issu$1 cl>ifi$1 & e/abli%$ "u        
p>agraphs 7#c7 & 7#d7 ( section #e7;e7 (
 ! ,improp] ,paym5ts ,elim9ation &      
,recov]y ,improvem5t ,act ( #bjab1 z 9  
effect on ! day be=e ! date ( enactm5t (
 ?is section--  7,a7 %all cont9ue to be 
9 effect on & aft] ! date ( enactm5t (  
?is section2 &  7,b7 may be modifi$ z   
det]m9$ appropriate by ! ,director ( !  
,(fice ( ,managem5t & ,budget4  7#c7    
,compliance ,! head ( ea* executive     
ag5cy1 9 consultation ) ! ,inspector    
,g5]al ( ! executive ag5cy1 %all ensure 
t any in=mation provid$ to an individual
 or entity "u ?is subsection is provid$ 
9 accordance ) protocols e/abli%$ "u ?is
 subsection4  7#d7 ,rule ( con/ruction  

,no?+ 9 ?is subsection %all be con/ru$--
 7,a7 to affect ! rights ( an individual
 "u section #eeb;a7p7 ( title #e2 or    
7,b7 to imp$e ! ex]cise ( an exemption  
provid$ to ,inspectors ,g5]al or by an  
executive ag5cy 9 coord9ation ) an      
,inspector ,g5]al "u section #f7;j7 ( ! 
,inspector ,g5]al ,act ( #aigh 7#e      
,u4,s4,c4 ,app474  7e7 ,plan ,to curb   
,f$]al improp] paym5ts to deceas$       
individuals by improv+ ! quality & use  
by ,f$]al ag5cies ( ! ,social ,security 
adm9i/ration dea? ma/] file & o!r dea?  
data  7#a7 ,e/abli%m5t ,9 conjunction ) 
! ,commission] ( ,social ,security & 9  
consultation ) relevant /akehold]s t h  
an int]e/ 9 or responsibility = provid+ 
! data1 & ea* ,/ate1 ! ,director ( !    
,(fice ( ,managem5t & ,budget %all      
conduct a /udy & update ! plan requir$  
to be e/abli%$ "u section #e7;g7 ( !    
,improp] ,paym5ts ,elim9ation & ,recov]y
 ,improvem5t ,act ( #bjab1 z 9 effect on
 ! day be=e ! date ( enactm5t ( ?is     
section1 = improv+ ! quality1 accuracy1 

& timel9ess ( dea? data ma9ta9$ by !    
,social ,security ,adm9i/ration1 includ+
 dea? in=mation report$ to !            
,commission] "u section #bje7r7 ( !     
,social ,security ,act 7#db ,u4,s4,c4   
#dje7r774  7#b7 ,additional actions "u  
plan ,! plan describ$ 9 ?is subsection  
%all include recomm5d$ actions by       
executive ag5cies to-- 7,a7 increase !  
quality & frequ5cy ( access to ! ,dea?  
,ma/] ,file & o!r dea? data2  7,b7      
a*ieve a goal ( at lea/ daily access z  
appropriate2  7,c7 provide = all ,/ates 
& o!r data provid]s to use improv$ &    
electronic means = provid+ data2  7,d7  
id5tify improv$ me?ods by executive     
ag5cies = det]m9+ ineligible paym5ts due
 to ! dea? ( a recipi5t ?r\gh proactive 
v]ification means2 &  7,e7 address      
improp] paym5ts made by executive       
ag5cies to deceas$ individuals z "p (   
,f$]al retirem5t programs4  7#c7 ,report
 ,n lat] ?an #abj days aft] ! date (    
enactm5t ( ?is section1 ! ,director ( ! 
,(fice ( ,managem5t & ,budget %all      

submit a report to ,congress on ! plan  
describ$ 9 ?is subsection1 includ+      
recomm5d$ legislation4  #ccee4 ,improv+ 
recov]y ( improp] paym5ts ,! ,director (
 ! ,(fice ( ,managem5t & ,budget %all   
det]m9e-- 7#a7 curr5t & hi/orical rates 
& am\nts ( recov]y ( improp] paym5ts1   
or1 9 cases 9 :i* improp] paym5ts are   
id5tifi$ solely on ! basis ( a sample1  
recov]y rates & am\nts e/imat$ on !     
basis ( ! applicable sample1 includ+ a  
li/ ( executive ag5cy recov]y audit     
contract programs & specific in=mation (
 am\nts & paym5ts recov]$ by recov]y    
audit contractors2 &  7#b7 t>gets =     
recov]+ improp] paym5ts1 includ+        
specific in=mation on am\nts & paym5ts  
recov]$ by recov]y audit contractors4   
#ccef4 ,improv+ ! use ( data by         
executive ag5cies = curb+ improp]       
paym5ts  7a7 ,prompt report+ ( dea?     
in=mation by ! ,dep>tm5t ( ,/ate & !    
,dep>tm5t ( ,def5se ,! proc$ure requir$ 
to be e/abli%$ "u section #g7;a7 ( !    
,improp] ,paym5ts ,elim9ation & ,recov]y

 ,improvem5t ,act ( #bjab1 z 9 effect on
 ! day be=e ! date ( enactm5t ( ?is     
section--  7#a7 %all cont9ue to be 9    
effect on & aft] ! date ( enactm5t ( ?is
 section2 &  7#b7 may be modifi$ z      
det]m9$ appropriate by ! ,director ( !  
,(fice ( ,managem5t & ,budget4  7b7     
,prompt report+ ( dea? in=mation by !   
,dep>tm5t ( ,vet]ans ,affairs & ! ,(fice
 ( ,p]sonnel ,managem5t ,n lat] ?an #a  
ye> aft] ! date ( enactm5t ( ?is        
section1 ! ,secret>y ( ,vet]ans ,affairs
 & ! ,director ( ! ,(fice ( ,p]sonnel   
,managem5t %all e/abli% a proc$ure "u   
:i* ! ,secret>y & ! ,director--  7#a7   
%all promptly & on a regul> basis submit
 in=mation relat+ to ! dea?s (          
individuals1 includ+ /opp$ paym5ts data 
z applicable1 to ea* executive ag5cy =  
:i* ! ,director ( ! ,(fice ( ,managem5t 
& ,budget det]m9es receiv+ & us+ su*    
in=mation w\ld be relevant & necess>y2 &
  7#b7 to facilitate ! c5traliz$ access 
( dea? data = ! use ( r$uc+ improp]     
paym5ts1 may id5tify additional ,f$]al  

s\rces ( dea? data & direct ! data own] 
to provide t data to #a or m executive  
ag5cies = t purpose4  7c7 ,guidance to  
executive ag5cies reg>d+ data access &  
use = improp] paym5ts purposes ,!       
guidance requir$ to be issu$ "u section 
#g7;b7 ( ! ,improp] ,paym5ts ,elim9ation
 & ,recov]y ,improvem5t ,act ( #bjab1 z 
9 effect on ! day be=e ! date ( enactm5t
 ( ?is section--  7#a7 %all cont9ue to  
be 9 effect on & aft] ! date ( enactm5t 
( ?is section2 &  7#b7 may be modifi$ z 
det]m9$ appropriate by ! ,director ( !  
,(fice ( ,managem5t & ,budget4  #cceg4  
,f9ancial & adm9i/rative controls relat+
 to fraud & improp] paym5ts  7a7        
,def9ition ,9 ?is section1 ! t]m ag5cy  
has ! mean+ giv5 ! t]m 9 section #eea ( 
title #e4  7b7 ,guidel9es ,! guidel9es  
requir$ to be e/abli%$ "u section #c7;a7
 ( ! ,fraud ,r$uction & ,data ,analytics
 ,act ( #bjae1 z 9 effect on ! day be=e 
! date ( enactm5t ( ?is section--  7#a7 
%all cont9ue to be 9 effect on & aft] ! 
date ( enactm5t ( ?is section2 &  7#b7  

may be p]iodically modifi$ by !         
,director ( ! ,(fice ( ,managem5t &     
,budget1 9 consultation ) ! ,comptroll] 
,g5]al ( ! ,unit$ ,/ates1 z ! ,director 
& ,comptroll] ,g5]al may det]m9e        
necess>y4  7c7 ,requirem5ts = controls  
,! guidel9es describ$ 9 subsection 7b7  
%all include-- 7#a7 conduct+ an         
evaluation ( fraud risks & us+ a        
risk-bas$ approa* to design & implem5t  
f9ancial & adm9i/rative control         
activities to mitigate id5tifi$ fraud   
risks2  7#b7 collect+ & analyz+ data f  
report+ me*anisms on detect$ fraud to   
monitor fraud tr5ds & us+ t data &      
in=mation to cont9u\sly improve fraud   
prev5tion controls2 &  7#c7 us+ !       
results ( monitor+1 evaluation1 audits1 
& inve/igations to improve fraud        
prev5tion1 detection1 & response4  7d7  
,report ,= ea* ( fiscal ye>s #bjai &    
#bjbj1 ea* ag5cy %all submit to         
,congress1 z "p ( ! annual f9ancial     
report ( ! ag5cy1 a report ( ! ag5cy    
on--  7#a7 implem5t+-- 7,a7 ! f9ancial &

 adm9i/rative controls describ$ 9       
subsection 7b72  7,b7 ! fraud risk      
pr9ciple 9 ! ,/&>ds = ,int]nal ,control 
9 ! ,f$]al ,gov]nm5t publi%$ by !       
,gov]nm5t ,acc\ntability ,(fice         
7commonly kn[n z ! ,gre5 ,book72 &  7,c7
 ,(fice ( ,managem5t & ,budget ,circul> 
,a-#abc1 or any successor !reto1 )      
respect to ! lead+ practices = manag+   
fraud risk2  7#b7 id5tify+ risks &      
vuln]abilities to fraud1 includ+ )      
respect to payroll1 b5efici>y paym5ts1  
grants1 l>ge contracts1 & pur*ase &     
travel c>ds2 &  7#c7 e/abli%+ /rategies1
 proc$ures1 & o!r /eps to curb fraud4   
#cceh4 ,int]ag5cy work+ gr\p =          
,gov]nm5twide paym5t integrity          
improvem5t  7a7 ,work+ gr\p  7#a7       
,e/abli%m5t ,n lat] ?an #ij days aft] ! 
date ( enactm5t ( ?is section1 !re is   
e/abli%$ an int]ag5cy work+ gr\p on     
paym5t integrity--  7,a7 to improve--   
7i7 ,/ate-adm9i/]$ ,f$]al programs to   
det]m9e eligibility processes & data %>+
 practices2  7ii7 ! guidel9es describ$ 9

 section #cceg7;b7 & o!r be/ practices &
 te*niques = detect+1 prev5t+1 &        
respond+ to improp] paym5ts1 includ+    
improp] paym5ts t are ! result ( fraud2 
&  7iii7 ! %>+ & developm5t ( data      
analytics te*niques to help prev5t &    
id5tify pot5tial improp] paym5ts1       
includ+ ^? t are ! result ( fraud2 &    
7,b7 to id5tify any additional          
activities t w improve paym5t integrity 
( ,f$]al programs4  7#b7 ,composition ,!
 int]ag5cy work+ gr\p e/abli%$ "u       
p>agraph 7#a7 %all be compos$ (--  7,a7 
! ,director ( ! ,(fice ( ,managem5t &   
,budget2  7,b7 #a repres5tative f ea* ( 
! ag5cies describ$ 9 p>agraphs 7#a7 &   
7#b7 ( section #ija7;b7 ( ?is title2 &  
7,c7 any o!r repres5tatives ( o!r       
executive ag5cies det]m9$ appropriate by
 ! ,director ( ! ,(fice ( ,managem5t &  
,budget1 :i* may include ! ,*ief        
,in=mation ,(fic]1 ! ,*ief ,procurem5t  
,(fic]1 ! ,*ief ,risk ,(fic]1 or ! ,*ief
 ,op]at+ ,(fic] ( an executive ag5cy4   
7b7 ,consultation ,! work+ gr\p e/abli%$

 "u subsection 7a77#a7 may consult )    
,(fices ( ,inspectors ,g5]al & ,f$]al & 
non-,f$]al exp]ts on fraud risk         
assessm5ts1 adm9i/rative controls ov]   
paym5t integrity1 f9ancial controls1 &  
o!r relevant matt]s4  7c7 ,meet+s ,!    
work+ gr\p e/abli%$ "u subsection       
7a77#a7 %all hold n few] ?an #d meet+s  
p] ye>4  7d7 ,report ,n lat] ?an #bdj   
days aft] ! date ( enactm5t ( ?is       
section1 ! work+ gr\p e/abli%$ "u       
subsection 7a77#a7 %all submit to       
,congress a report t includes--  7#a7 a 
plan conta9+ tangible solutions to      
prev5t & r$uce improp] paym5ts2 &  7#b7 
a plan = ,/ate ag5cies to "w ) ,f$]al   
ag5cies to regul>ly review li/s (       
b5efici>ies ( ,/ate-manag$ ,f$]al       
programs = duplicate enrollm5t betwe5   
,/ates1 includ+ h[ ! ,d ,n ,pay ,bus9ess
 ,c5t] & ! data analytics initiative ( !
 ,dep>tm5t ( ! ,treasury c\ld aid 9 !   
detection ( duplicate enrollm5t4  4  7b7
 ,te*nical & con=m+ am5dm5t ,! table (  
sections = *apt] #cc ( title #ca1 ,unit$

 ,/ates ,code1 is am5d$ by add+ at ! end
 ! foll[+3  ,sub*apt] ,,iv--,improp]    
paym5ts#ccea4 ,def9itions4#cceb4        
,e/imates ( improp] paym5ts & reports on
 actions to r$uce improp] paym5ts4#ccec4
 ,compliance4#cced4 ,d ,n ,pay          
,initiative4#ccee4 ,improv+ recov]y (   
improp] paym5ts4#ccef4 ,improv+ ! use ( 
data by executive ag5cies = curb+       
improp] paym5ts4#cceg4 ,f9ancial &      
adm9i/rative controls relat+ to fraud & 
improp] paym5ts4#cceh4 ,int]ag5cy work+ 
gr\p = ,gov]nm5twide paym5t integrity   
improvem5t4  4  #c4 ,repeals  7a7 ,9    
g5]al  7#a7 ,improp] ,paym5ts ,in=mation
 ,act ( #bjjb ,! ,improp] ,paym5ts      
,in=mation ,act ( #bjjb 7#ca ,u4,s4,c4  
#ccba note7 is repeal$4  7#b7 ,improp]  
,paym5ts ,elim9ation & ,recov]y ,act (  
#bjaj ,! ,improp] ,paym5ts ,elim9ation &
 ,recov]y ,act ( #bjaj 7,public ,law    
#aad-bjd2 #abd ,/at4 #bbbd7 is repeal$4 
7#c7 ,improp] ,paym5ts ,elim9ation &    
,recov]y ,improvem5t ,act ( #bjab ,!    
,improp] ,paym5ts ,elim9ation & ,recov]y

 ,improvem5t ,act ( #bjab 7#ca ,u4,s4,c4
 #ccba note7 is repeal$4  7#d7 ,fraud   
,r$uction & ,data ,analytics ,act (     
#bjae ,! ,fraud ,r$uction & ,data       
,analytics ,act ( #bjae 7#ca ,u4,s4,c4  
#ccba note7 is repeal$4  7b7 ,te*nical &
 con=m+ am5dm5ts  7#a7 ,gov]nm5t ,*>ge  
,c>d ,abuse ,prev5tion ,act ( #bjab     
,section #f7;a7 ( ! ,gov]nm5t ,*>ge ,c>d
 ,abuse ,prev5tion ,act ( #bjab 7#e     
,u4,s4,c4 #egja note7 is am5d$ by /rik+ 
section #ceab ( title #ca1 ,unit$ ,/ates
 ,code1 or 9 ! ,improp] ,paym5ts        
,in=mation ,act ( #bjjb 7#ca ,u4,s4,c4  
#ccba note7 & ins]t+ section #ceab or   
sub*apt] ,,iv ( *apt] #cc ( title #ca1  
,unit$ ,/ates ,code4  7#b7 ,homel&      
,security ,act ( #bjjb ,section         
#bjbb7;a7 ( ! ,homel& ,security ,act (  
#bjjb 7#f ,u4,s4,c4 #fab7;a77 is am5d$--
 7,a7 9 p>agraph 7#a77;,c71 by /rik+    
,consi/5t ) ! ,improp] ,paym5ts         
,in=mation ,act ( #bjjb 7#ca ,u4,s4,c4  
#ccba note7 & ins]t+ ,consi/5t )        
sub*apt] ,,iv ( *apt] #cc ( title #ca1  

,unit$ ,/ates ,code2 &  7,b7 9 p>agraph 
7#e71 by /rik+ section #b7;h7 ( !       
,improp] ,paym5ts ,elim9ation & ,recov]y
 ,act ( #bjaj 7#ca ,u4,s4,c4 #ccba note7
 & ins]t+ section #cceb7;i7 ( title #ca1
 ,unit$ ,/ates ,code14  7#c7 ,social    
,security ,act ,section #baje ( !       
,social ,security ,act 7#db ,u4,s4,c4   
#acig;ee7c77 is am5d$ by /rik+ ,improp] 
,paym5ts ,in=mation ,act ( #bjjb ea*    
place t t]m appe>s & ins]t+ sub*apt]    
,,iv ( *apt] #cc ( title #ca1 ,unit$    
,/ates ,code4  7#d7 ,title #ca ,section 
#cefb7;a7 ( title #ca1 ,unit$ ,/ates    
,code1 is am5d$--  7,a7 9 ! matt] prec$+
 p>agraph 7#a7-- 7i7 by /rik+ section   
#cefa & ins]t+ section #cceb7;i72 &     
7ii7 by /rik+ ag5cy = ! foll[+ purposes3
 & all t foll[s ?r\gh ,to reimburse &   
ins]t+ ag5cy to reimburse2 &  7,b7 by   
/rik+ p>agraph 7#b74  ,pass$ ! ,s5ate   
,july #af1 #bjai4,secret>y