#aaith ,,congress #b;d ,session ,h4 ,r4 #hdfg ,,an ,,act ,to reform the ,payment ,integrity ,information ,act of #bjai to ensure executive agencies focus on fraud prevention1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,zeroing ,out ,monetary ,benefits ,improperly ,expended ,act or the ,,zombie ,act4 #b4 ,reforms to ,payment ,integrity ,information ,act of #bjai 7a7 ,definitions ,section #ccea of title #ca1 ,united ,states ,code1 is amended-- 7#a7 in paragraph 7#b7-- 7,a7 in subparagraph 7,a7-- 7i7 in clause 7i7-- 7,i7 by inserting information on before improper payments2 7,,ii7 by striking information with and inserting resulting in financial loss to the ,government in the accompanying materials to2 and 7,,iii7 by striking and at the end2 and 7ii7 by inserting after clause 7ii7 the following new clause3 7iii7 published information on improper payments resulting in financial loss to the ,government with the annual budget justification of the executive agency for the most recent fiscal year2 2 7,b7 by redesignating subparagraphs 7,b7 and 7,c7 as clauses 7iv7 and 7v71 respectively 7and adjusting the margins accordingly72 7,c7 by redesignating subparagraphs 7,d7 through 7,f7 as subparagraphs 7,b7 through 7,d71 respectively2 7,d7 in subparagraph 7,a77iv71 as so redesignated-- 7i7 by striking if required1 has2 and 7ii7 by inserting and after the semicolon at the end2 7,e7 in subparagraph 7,a77v71 as so redesignated1 by striking if required1 publishes and inserting published2 7,f7 by striking subparagraph 7,b71 as so redesignated2 and 7,g7 by redesignating subparagraphs 7,c7 and 7,d71 as so redesignated1 as subparagraphs 7,b7 and 7,c72 and 7#b7 by adding at the end the following new paragraph3 7#i7 ,financial loss to the ,government ,the term financial loss to the ,government-- 7,a7 means any payment or part of a payment made in excess of the correct amount authorized by law that results in a financial loss to the ,federal ,government2 and 7,b7 does not include any payment or part of a payment made to the correct person or entity for the correct amount authorized by law but not made in accordance with certain administrative procedures applicable to the executive agency 7excluding any such procedure necessary to establish eligibility or to verify that any payment or part of a payment was made in such correct amount74 4 7b7 ,estimates of improper payments resulting in financial loss to the government and reports on actions to reduce such payments ,section #cceb of title #ca1 ,united ,states ,code1 is amended-- 7#a7 in the heading-- 7,a7 by inserting resulting in financial loss to the ,government before and reports 7and by conforming the item relating to such section in the table of sections in chapter #cc72 and 7,b7 by striking reduce improper payments and inserting reduce such payments 7and by conforming the item relating to such section in the table of sections in chapter #cc72 7#b7 in subsection 7a7-- 7,a7 in paragraph 7#a7-- 7i7 in subparagraph 7,a71 by striking periodically review all programs and activities and inserting submit annually a list of each program and activity required to be reported on the ,program ,inventory under section #aabb2 and 7ii7 in subparagraph 7,b7-- 7,i7 by striking all programs and activities and inserting each program and activity from each such list2 and 7,,ii7 by striking 7#c7 and inserting 7#b72 7,b7 by striking paragraph 7#b72 7,c7 by redesignating paragraph 7#c7 as paragraph 7#b72 and 7,d7 in paragraph 7#b71 as so redesignated-- 7i7 in subparagraph 7,a71 by striking improper payments and payments whose propriety cannot be determined and inserting improper payments resulting in financial loss to the ,government and payments lacking sufficient documentation to determine whether the payments result in financial loss to the ,government2 7ii7 by redesignating subparagraphs 7,b7 and 7,c7 as subparagraphs 7,d7 and 7,e71 respectively2 7iii7 by inserting after subparagraph 7,a7 the following new subparagraphs3 7,b7 ,development of risk assessment guidance ,not later than #a year after the date of the enactment of this ,act1 the ,secretary of the ,treasury shall develop risk assessment guidance to assess the risk of improper payments resulting in financial loss to the ,government that addresses the following3 7i7 ,the likelihood of payment errors and the magnitude of such errors that do not result in financial loss to the ,government4 7ii7 ,the likelihood of payment errors and the magnitude of such errors that do result in financial loss to the ,government4 7iii7 ,a formula for estimating financial loss to the ,government4 7iv7 ,relevant governmentwide documents and best practices for managing improper payments and mitigating fraud risks in ,federal programs1 such as the document of the ,government ,accountability ,office entitled ,a ,framework for ,managing ,fraud ,risks in ,federal ,programs 7or any successor document71 as applicable and appropriate4 7,c7 ,scope ,in preparing a list under paragraph 7#a77;,a71 the head of each executive agency shall require1 within #f months after issuing the risk assessment guidance1 a risk assessment using the guidance developed under subparagraph 7,b7 for each program or activity listed under paragraph 7#a77;,a7 for each-- 7i7 existing programs or activities prior to the next disbursement of ,federal funds with respect to the program or activity2 and 7ii7 newly authorized programs and activities prior to any disbursement of ,federal funds with respect to the program or activity4 2 7iv7 in subparagraph 7,d71 as so redesignated-- 7,i7 in the heading1 by striking ,scope and inserting ,requirements2 7,,ii7 in the matter preceding clause 7i7-- 7aa7 by striking ,in conducting a review under paragraph 7#a71 the head of each executive agency shall and inserting ,risk assessments are to be conducted on an ongoing basis1 but no less frequently than once every #c years1 and2 and 7bb7 by inserting 1 including with respect to fraud in any program or activity listed under paragraph 7#a77;,a7 that causes improper payments resulting in financial loss to the ,government before 1 such as2 7,,iii7 in clause 7x71 by striking data systems and inserting data assets2 and 7,,iv7 in clause 7xi7-- 7aa7 by inserting or improper payments before as assessed2 and 7bb7 by inserting 1 or any successor document after 7commonly known as the ,green ,book72 and 7v7 in subparagraph 7,e71 as so redesignated-- 7,i7 in the heading1 by striking ,annual report and inserting ,reports2 7,,ii7 in the matter preceding clause 7i71 by striking ,each executive agency shall publish an annual report and inserting ,not less than once every #c years1 the head of each executive agency shall publish a report1 which may be included in a report required under subsection 7b77#b77;,f7 by such head with respect to a high-priority ,federal program or activity12 7,,iii7 in clause 7i71 by striking 2 and and inserting a semicolon2 7,,iv7 in clause 7ii71 by striking the period at the end and inserting 2 and2 and 7,v7 by adding at the end the following new clause3 7iii7 a prioritized listing of risks identified in subparagraph 7,d7 associated with each program and activity listed under paragraph 7#a77;,a7 and any corresponding financial and administrative control to mitigate any such risk1 including the use of the ,do ,not ,pay ,initiative 7or any successor system7 and any other system or data asset maintained by the ,secretary of the ,treasury or the ,inspector ,general of the executive agency to prevent fraud or improper payments resulting in financial loss to the ,government prior to making an eligibility determination to receive ,federal funds with respect to any such program or activity listed under paragraph 7#a77;,a71 issuing an award1 or requesting a payment4 2 7#c7 in subsection 7b7-- 7,a7 in the heading1 by inserting that result in financial loss to the ,government after ,improper payments2 7,b7 in paragraph 7#a7-- 7i7 in subparagraph 7,a7-- 7,i7 by inserting and activities after high-priority ,federal programs2 and 7,,ii7 by inserting that result in financial loss after improper payments each place it appears2 and 7ii7 in subparagraph 7,b71 by striking associated and inserting and financial loss associated2 and 7,c7 in paragraph 7#b7-- 7i7 in the heading1 by inserting that result in financial loss to the ,government after improper payments2 7ii7 in subparagraph 7,a71 by striking shall on an annual basis and inserting 1 not less frequently than once every #c years1 shall2 7iii7 in subparagraph 7,b7-- 7,i7 in clause 7i7-- 7aa7 in subclause 7,i7-- 7,,aa7 by inserting that result in financial loss to the ,government after improper payments2 and 7,,bb7 by striking 2 and and inserting a semicolon2 7bb7 in subclause 7,,ii71 by inserting that result in financial loss to the ,government1 including by making it harder for fraudulent actors to exploit the program after improper payments2 and 7cc7 by adding at the end the following new subclause3 7,,iii7 has taken or plans to take to reduce the percentage of improper payments that result in financial loss to the ,government2 2 7,,ii7 by inserting after clause 7i7 the following new clause3 7ii7 shall include-- 7,i7 an estimate of the total amount of the payments that result in financial loss to the ,government2 7,,ii7 an estimate of the total amount of the payments that do not result in financial loss to the ,government2 7,,iii7 the percentage of payments that result in financial loss to the ,government2 7,,iv7 an assessment of the portion of the total amount of payments that result in financial loss to the ,government that are due to fraudulent actions by the recipient of such payments2 7,v7 the total amount of disbursed payments2 and 7,,vi7 a description of resources or legislative changes proposed to improve or maintain the integrity of the relevant program or activity2 and 2and 7,,iii7 by redesignating clause 7iii7 as clause 7ii72 7iv7 in subparagraph 7,e77i7-- 7,i7 in subclause 7,i7-- 7aa7 by striking improper payment and inserting improper payments that result in financial loss2 and 7bb7 by striking 2 and and inserting a semicolon2 7,,ii7 in subclause 7,,ii71 by striking improper payments and inserting improper payments that result in financial loss2 and 7,,iii7 by adding at the end the following new subclause3 7,,iii7 each statistically valid estimate developed under subsection 7c77#a77;,a7 and make a recommendation to the head of the executive agency on whether the agency estimate should be reassessed and reestablished2 and 2 7v7 by amending subparagraph 7,f7 to read as follows3 7,f7 ,agency liaison designation and mandatory coordination meetings ,not less frequently than once every fiscal year1 the head of each executive agency with a high-priority ,federal program or activity identified under paragraph 7#a77;,b7 shall designate a senior official of the executive agency to serve as the liaison of the executive agency for work under this subchapter who shall meet for a non-audit or investigative purpose with the ,director of the ,office of ,management and ,budget 7or a designee of the ,director71 the ,commissioner of the ,bureau of the ,fiscal ,service of the ,department of the ,treasury 7or a designee of the ,commissioner71 the ,inspector ,general of the executive agency 7or a designee of the ,inspector ,general71 and the ,pandemic ,response ,accountability ,committee established under section #aejaj of the ,,cares ,act 7,public ,law #aaf-acf2 #acd ,stat4 #ecc7 7or any successor organization7 to report on any action taken during the preceding fiscal year and any planned action1 including any reform to any financial or administrative control1 to prevent improper payments 7with a focus on improper payments that lead to financial loss to the ,government7 and mitigate fraud in such program or activity4 2 and 7vi7 by adding at the end the following new subparagraph3 7,g7 ,federal-,state coordination meetings ,not less frequently than once every fiscal year1 the ,director of the ,office of ,management and ,budget and the ,secretary of the ,treasury shall convene a meeting of ,state officials responsible for program and payment integrity in programs administered on behalf of the ,federal ,government by a ,state or local government to review fraud prevention performance1 share best practices1 and identify ongoing coordination challenges4 2 7#d7 in subsection 7c7-- 7,a7 in the heading1 by inserting that result in financial loss to the ,government after ,improper payments2 7,b7 in paragraph 7#a7-- 7i7 by amending subparagraph 7,a7 to read as follows3 7,a7 develop a statistically valid estimate of improper payments that result in financial loss to the ,government2 2 7ii7 by striking subparagraph 7,b72 and 7iii7 by adding at the end the following new subparagraphs3 7,b7 include such estimate in the annual budget justification of the executive agency2 and 7,c7 revise such estimate if the head of the executive agency determines1 which may be based on a recommendation from the ,director in consultation with the ,secretary of the ,treasury and the ,inspector ,general of the executive agency1 that there is a need to reestablish the estimate of improper payments that result in financial loss to the ,government due to-- 7i7 a significant change1 as determined by the agency head1 to the program or activity's appropriation or authorization2 7ii7 newly establishing the program or activity2 or 7iii7 a recommendation from the agency ,inspector ,general in the annual compliance report issued under section #ccec7;a74 2 and 7,c7 in paragraph 7#b7-- 7i7 in subparagraph 7,a71 by inserting resulting in financial loss to the ,government after improper payment2 and 7ii7 in subparagraph 7,b71 by striking improper payments before estimate2 7#e7 in subsection 7d7-- 7,a7 in the heading-- 7i7 by striking ,reduce and inserting ,reduce and prevent2 and 7ii7 by inserting that result in financial loss to the ,government after ,improper payments2 7,b7 in the matter preceding paragraph 7#a7-- 7i7 by inserting that result in financial loss to the ,government after estimated improper payments2 and 7ii7 by striking reduce improper payments and inserting reduce and prevent such payments2 7,c7 in paragraph 7#a71 by inserting that result in financial loss to the ,government 7including actions used to commit fraud7 after improper payments2 7,d7 in paragraph 7#b7-- 7i7 in the matter preceding subparagraph 7,a71 by inserting that result in financial loss to the ,government after in order to reduce improper payments2 7ii7 in subparagraph 7,b71 by striking 2 and and inserting a semicolon at the end2 7iii7 in subparagraph 7,c71 by inserting and after the semicolon2 and 7iv7 by adding at the end the following new subparagraph3 7,d7 access to appropriate records and data assets1 whether maintained by an executive agency1 a ,state or local government1 or a private sector organization2 2 7,e7 in paragraph 7#d71 by inserting that result in financial loss to the ,government after improper payments2 7,f7 in paragraph 7#e7-- 7i7 by inserting that result in financial loss to the ,government after improper payments each place it appears2 and 7ii7 in subparagraph 7,b77ii71 by striking 2 and and inserting a semicolon at the end2 7,g7 by amending paragraph 7#f7 to read as follows3 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 that result in financial loss to the ,government matched the level of improper payments that resulted in financial loss to the ,government1 including a breakdown by category of such improper payments and specific timelines for completion of those actions2 and 2 and 7,h7 by adding at the end the following new paragraph3 7#g7 information on the progress of the executive agency with respect to-- 7,a7 implementing the financial and administrative controls required to be established under subsection 7a77#b77;,e77iii72 7,b7 implementing relevant governmentwide documents and best practices for managing improper payments and mitigating fraud risks in ,federal programs1 such as the document of the ,government ,accountability ,office entitled ,a ,framework for ,managing ,fraud ,risks in ,federal ,programs 7or any successor document71 as applicable and appropriate1 including with respect to the identification of-- 7i7 any dedicated entity that leads the fraud risk management activity of the executive agency2 7ii7 responsibilities of such entity1 including any program or operation for which the entity is responsible2 7iii7 capacity1 including any limitations1 to strategically manage fraud risks2 7iv7 any program or operation within the executive agency for which there is not a dedicated entity that leads fraud risk management1 along with a detailed justification for not having such a dedicated entity2 and 7v7 the status of implementing the overarching concepts with associated leading practices identified in such document entitled ,a ,framework for ,managing ,fraud ,risks in ,federal ,programs 7or any such successor document71 as applicable and appropriate2 7,c7 implementing the ,office of ,management and ,budget ,circular ,a-#abc1 or any successor policy1 with respect to leading practices for managing fraud and improper payments risk2 7,d7 identifying fraud risks and vulnerabilities1 including but not limited to payroll1 beneficiary payments1 grants1 large contracts1 and purchase and travel cards2 and 7,e7 establishing strategies1 procedures1 and other steps to prevent1 detect1 and respond to fraud4 2 7#f7 in subsection 7e7-- 7,a7 in the matter preceding paragraph 7#a7-- 7i7 by inserting that result in financial loss to the ,government1 after ,with respect to improper payments2 and 7ii7 by striking the improper payments and inserting such payments2 7,b7 in paragraph 7#a71 by inserting that result in financial loss to the ,government after improper payments2 and 7,c7 in paragraph 7#b71 by inserting that result in financial loss to the ,government1 after improper payments2 7#g7 in subsection 7f7-- 7,a7 in paragraph 7#a7-- 7i7 in the matter preceding subparagraph 7,a7-- 7,i7 by inserting that result in financial loss to the ,government after regarding improper payments2 and 7,,ii7 by inserting such after recover2 7ii7 in subparagraph 7,b7-- 7,i7 by inserting ,government before ,reform2 and 7,,ii7 by striking and at the end2 7iii7 by inserting after subparagraph 7,b7 the following new subparagraphs3 7,c7 the ,committee on the ,budget of the ,senate2 7,d7 the ,committee on the ,budget of the ,house of ,representatives2 7,e7 the ,committee on ,appropriations of the ,senate2 7,f7 the ,committee on ,appropriations of the ,house of ,representatives2 and 2 and 7iv7 by redesignating subparagraph 7,c7 as subparagraph 7,g72 and 7,b7 in paragraph 7#b7-- 7i7 in subparagraph 7,a71 by inserting that result in financial loss to the ,government after improper payments2 7ii7 in subparagraph 7,c71 by inserting that result in financial loss to the ,government after improper payment2 7iii7 in subparagraph 7,d71 by inserting that result in financial loss to the ,government after improper payments2 and 7iv7 in subparagraph 7,e71 by inserting that result in financial loss to the ,government after improper payment2 7#h7 in subsection 7g7-- 7,a7 in paragraph 7#a71 by inserting and periodically thereafter1 after ,not later than #a year after the date of enactment of this section12 and 7,b7 in paragraph 7#b77;,b71 by striking prepayment and postpayment and inserting pre-award1 pre-payment1 and post-payment2 and 7#i7 in subsection 7i77#b7-- 7,a7 in subparagraph 7,c71 by striking #be and inserting #aj2 and 7,b7 in subparagraph 7,d71 by striking #be and inserting #ge4 #c4 ,reforms to annual compliance report by inspectors general of executive agencies 7a7 ,,omb guidance ,section #ccec7;a77#c7 of title #ca1 ,united ,states ,code1 is amended-- 7#a7 in the matter preceding subparagraph 7,a7-- 7,a7 by striking date of enactment of this section and inserting date of the enactment of the amendments made to this section by the ,zeroing ,out ,monetary ,benefits ,improperly ,expended ,act or the ,,zombie ,act2 and 7,b7 by striking shall develop and promulgate guidance and inserting shall revise existing guidance issued under this section2 7#b7 in subparagraph 7,b7-- 7,a7 by striking improper payment estimates methodology and inserting estimation methodologies2 and 7,b7 by inserting that result in financial loss to the ,government after improper payments2 7#c7 in subparagraph 7,c71 by inserting that result in financial loss to the ,government after improper payments2 7#d7 in subparagraph 7,d71 by inserting that result in financial loss to the ,government after improper payments2 and 7#e7 in subparagraph 7,e7-- 7,a7 by striking ,inspectors ,general include and inserting ,inspectors ,general shall include2 and 7,b7 by inserting that result in financial loss to the ,government after improper payments4 7b7 ,,cigie guidance ,section #ccec7;a77#d7 of title #ca1 ,united ,states ,code1 is amended-- 7#a7 in the matter preceding subparagraph 7,a7-- 7,a7 by striking date of enactment of this section and inserting date of the enactment of the amendments made to this section by the ,zeroing ,out ,monetary ,benefits ,improperly ,expended ,act or the ,,zombie ,act2 and 7,b7 by striking develop and promulgate guidance and inserting revise existing guidance issued under this section2 7#b7 in subparagraph 7,b7-- 7,a7 in clause 7i7-- 7i7 by striking section #ccea7b77;,b7 and inserting section #ccea7b77;,a77iv72 and 7ii7 by inserting that result in financial loss to the ,government after improper payments each place it appears2 7,b7 in clause 7ii71 by striking section #ccea7b77;,c7 and inserting section #ccea7b77;,a77v72 7,c7 by striking clause 7iii72 7,d7 by redesignating clauses 7iv7 through 7vi7 as clauses 7iii7 through 7v71 respectively2 7,e7 in clause 7iii71 as so redesignated1 by inserting that result in financial loss to the ,government after improper payments2 and 7,f7 in clause 7iv71 as so redesignated1 by inserting that result in financial loss to the ,government after improper payments4 ,passed the ,house of ,representatives ,june #aj1 #bjbf4;,clerk4