II 

Calendar No. 76 

116TH CONGRESS 

1ST SESSION S. 375 

[Report No. 116–35] 

To improve efforts to identify and reduce Governmentwide improper 

payments, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 7, 2019 

Mr. CARPER (for himself, Mr. JOHNSON, Mr. PETERS, and Mr. BRAUN) introduced the following bill; which was read twice and referred to the Committee on Homeland Security and Governmental Affairs 

MAY 6, 2019 

Reported by Mr. JOHNSON, without amendment 

A BILL 

To improve efforts to identify and reduce Governmentwide 

improper payments, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Payment Integrity In5 formation Act of 2019’’. 


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1 SEC. 2. IMPROPER PAYMENTS. 

2 (a) IN GENERAL.—Chapter 33 of title 31, United 

3 States Code, is amended by adding at the end the fol4 lowing: 

5 ‘‘Subchapter IV—Improper Payments 

6 ‘‘§ 3351. Definitions 

7 ‘‘In this subchapter: 

8 ‘‘(1) ANNUAL FINANCIAL STATEMENT.—The 

9 term ‘annual financial statement’ means the annual 

10 financial statement required under section 3515 of 

11 this title or similar provision of law. 

12 ‘‘(2) COMPLIANCE.—The term ‘compliance’ 

13 means that an executive agency— 

14 ‘‘(A) has— 

15 ‘‘(i) published improper payments in16 formation with the annual financial state17 ment of the executive agency for the most 

18 recent fiscal year; and 

19 ‘‘(ii) posted on the website of the ex20 ecutive agency that statement and any ac21 companying materials required under guid22 ance of the Office of Management and 

23 Budget; 

24 ‘‘(B) if required, has conducted a program 

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1 tivity that conforms with the requirements 

2 under section 3352(a); 

3 ‘‘(C) if required, publishes improper pay4 ments estimates for all programs and activities 

5 identified under section 3352(a) in the accom6 panying materials to the annual financial state7 ment; 

8 ‘‘(D) publishes programmatic corrective ac9 tion plans prepared under section 3352(d) that 

10 the executive agency may have in the accom11 panying materials to the annual financial state12 ment; 

13 ‘‘(E) publishes improper payments reduc14 tion targets established under section 3352(d) 

15 that the executive agency may have in the ac16 companying materials to the annual financial 

17 statement for each program or activity assessed 

18 to be at risk, and has demonstrated improve19 ments and developed a plan to meet the reduc20 tion targets; and 

21 ‘‘(F) has reported an improper payment 

22 rate of less than 10 percent for each program 

23 and activity for which an estimate was pub24 lished under section 3352(c). 


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1 ‘‘(3) DO NOT PAY INITIATIVE.—The term ‘Do 

2 Not Pay Initiative’ means the initiative described in 

3 section 3354(b). 

4 ‘‘(4) IMPROPER PAYMENT.—The term ‘im5 proper payment’— 

6 ‘‘(A) means any payment that should not 

7 have been made or that was made in an incor8 rect amount, including an overpayment or un9 derpayment, under a statutory, contractual, ad10 ministrative, or other legally applicable require11 ment; and 

12 ‘‘(B) includes— 

13 ‘‘(i) any payment to an ineligible re14 cipient; 

15 ‘‘(ii) any payment for an ineligible 

16 good or service; 

17 ‘‘(iii) any duplicate payment; 

18 ‘‘(iv) any payment for a good or serv19 ice not received, except for those payments 

20 where authorized by law; and 

21 ‘‘(v) any payment that does not ac22 count for credit for applicable discounts. 

23 ‘‘(5) PAYMENT.—The term ‘payment’ means 

24 any transfer or commitment for future transfer of 

25 Federal funds such as cash, securities, loans, loan 


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1 guarantees, and insurance subsidies to any non-Fed2 eral person or entity or a Federal employee, that is 

3 made by a Federal agency, a Federal contractor, a 

4 Federal grantee, or a governmental or other organi5 zation administering a Federal program or activity. 

6 ‘‘(6) PAYMENT FOR AN INELIGIBLE GOOD OR

7 SERVICE.—The term ‘payment for an ineligible good 

8 or service’ includes a payment for any good or serv9 ice that is rejected under any provision of any con10 tract, grant, lease, cooperative agreement, or other 

11 funding mechanism. 

12 ‘‘(7) RECOVERY AUDIT.—The term ‘recovery 

13 audit’ means a recovery audit described in section 

14 3352(i). 

15 ‘‘(8) STATE.—The term ‘State’ means each 

16 State of the United States, the District of Columbia, 

17 each territory or possession of the United States, 

18 and each Federally recognized Indian tribe. 

19 ‘‘§ 3352. Estimates of improper payments and reports 

20 on actions to reduce improper payments 

21 ‘‘(a) IDENTIFICATION OF SUSCEPTIBLE PROGRAMS

22 AND ACTIVITIES.— 

23 ‘‘(1) IN GENERAL.—The head of each executive 

24 agency shall, in accordance with guidance prescribed 


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1 by the Director of the Office of Management and 

2 Budget— 

3 ‘‘(A) periodically review all programs and 

4 activities that the head of the executive agency 

5 administers; and 

6 ‘‘(B) identify all programs and activities 

7 with outlays exceeding the statutory threshold 

8 dollar amount described in paragraph (3)(A)(i) 

9 that may be susceptible to significant improper 

10 payments. 

11 ‘‘(2) FREQUENCY.—A review under paragraph 

12 (1) shall be performed for each program and activity 

13 that the head of an executive agency administers not 

14 less frequently than once every 3 fiscal years. 

15 ‘‘(3) RISK ASSESSMENTS.— 

16 ‘‘(A) DEFINITION OF SIGNIFICANT.—In 

17 this paragraph, the term ‘significant’ means 

18 that, in the preceding fiscal year, the sum of a 

19 program or activity’s improper payments and 

20 payments whose propriety cannot be determined 

21 by the executive agency due to lacking or insuf22 ficient documentation may have exceeded— 

23 ‘‘(i) $10,000,000 of all reported pro24 gram or activity payments of the executive 


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1 agency made during that fiscal year and 

2 1.5 percent of program outlays; or 

3 ‘‘(ii) $100,000,000. 

4 ‘‘(B) SCOPE.—In conducting a review 

5 under paragraph (1), the head of each executive 

6 agency shall take into account those risk factors 

7 that are likely to contribute to a susceptibility 

8 to significant improper payments, such as— 

9 ‘‘(i) whether the program or activity 

10 reviewed is new to the executive agency; 

11 ‘‘(ii) the complexity of the program or 

12 activity reviewed; 

13 ‘‘(iii) the volume of payments made 

14 through the program or activity reviewed; 

15 ‘‘(iv) whether payments or payment 

16 eligibility decisions are made outside of the 

17 executive agency, such as by a State or 

18 local government; 

19 ‘‘(v) recent major changes in program 

20 funding, authorities, practices, or proce21 dures; 

22 ‘‘(vi) the level, experience, and quality 

23 of training for personnel responsible for 

24 making program eligibility determinations 

25 or certifying that payments are accurate; 


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1 ‘‘(vii) significant deficiencies in the 

2 audit report of the executive agency or 

3 other relevant management findings that 

4 might hinder accurate payment certifi5 cation; 

6 ‘‘(viii) similarities to other programs 

7 or activities that have reported improper 

8 payment estimates or been deemed suscep9 tible to significant improper payments; 

10 ‘‘(ix) the accuracy and reliability of 

11 improper payment estimates previously re12 ported for the program or activity, or other 

13 indicator of potential susceptibility to im14 proper payments identified by the Inspec15 tor General of the executive agency, the 

16 Government Accountability Office, other 

17 audits performed by or on behalf of the 

18 Federal, State, or local government, disclo19 sures by the executive agency, or any other 

20 means; 

21 ‘‘(x) whether the program or activity 

22 lacks information or data systems to con23 firm eligibility or provide for other pay24 ment integrity needs; and 


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1 ‘‘(xi) the risk of fraud as assessed by 

2 the executive agency under the Standards 

3 for Internal Control in the Federal Govern4 ment published by the Government Ac5 countability Office (commonly known as 

6 the ‘Green Book’). 

7 ‘‘(C) ANNUAL REPORT.—Each executive 

8 agency shall publish an annual report that in9 cludes— 

10 ‘‘(i) a listing of each program or activ11 ity identified under paragraph (1), includ12 ing the date on which the program or ac13 tivity was most recently assessed for risk 

14 under paragraph (1); and 

15 ‘‘(ii) a listing of any program or activ16 ity for which the executive agency makes 

17 any substantial changes to the methodolo18 gies of the reviews conducted under para19 graph (1). 

20 ‘‘(b) IMPROVING THE DETERMINATION OF IMPROPER

21 PAYMENTS.— 

22 ‘‘(1) IN GENERAL.—The Director of the Office 

23 of Management and Budget shall on an annual 

24 basis— 


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1 ‘‘(A) identify a list of high-priority Federal 

2 programs for greater levels of oversight and re3 view— 

4 ‘‘(i) in which the highest dollar value 

5 or highest rate of improper payments 

6 occur; or 

7 ‘‘(ii) for which there is a higher risk 

8 of improper payments; and 

9 ‘‘(B) in coordination with the executive 

10 agency responsible for administering a high-pri11 ority program identified under subparagraph 

12 (A), establish annual targets and semi-annual 

13 or quarterly actions for reducing improper pay14 ments associated with the high-priority pro15 gram. 

16 ‘‘(2) REPORT ON HIGH-PRIORITY IMPROPER

17 PAYMENTS.— 

18 ‘‘(A) IN GENERAL.—Subject to Federal 

19 privacy policies and to the extent permitted by 

20 law, each executive agency with a program iden21 tified under paragraph (1)(A) shall on an an22 nual basis submit to the Inspector General of 

23 the executive agency and the Office of Manage24 ment and Budget, and make available to the 


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1 public, including through a website, a report on 

2 that program. 

3 ‘‘(B) CONTENTS.—Each report submitted 

4 under subparagraph (A)— 

5 ‘‘(i) shall describe any action the exec6 utive agency— 

7 ‘‘(I) has taken or plans to take to 

8 recover improper payments; and 

9 ‘‘(II) intends to take to prevent 

10 future improper payments; and 

11 ‘‘(ii) shall not include— 

12 ‘‘(I) any referrals the executive 

13 agency made or anticipates making to 

14 the Department of Justice; or 

15 ‘‘(II) any information provided in 

16 connection with a referral described in 

17 subclause (I). 

18 ‘‘(C) PUBLIC AVAILABILITY ON CENTRAL

19 WEBSITE.—The Office of Management and 

20 Budget shall make each report submitted under 

21 subparagraph (A) available on a central 

22 website. 

23 ‘‘(D) AVAILABILITY OF INFORMATION TO

24 INSPECTOR GENERAL.—Subparagraph (B)(ii) 

25 shall not prohibit any referral or information 


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1 being made available to an Inspector General as 

2 otherwise provided by law. 

3 ‘‘(E) ASSESSMENT AND RECOMMENDA4 TIONS.—The Inspector General of each execu5 tive agency that submits a report under sub6 paragraph (A) shall, for each program of the 

7 executive agency that is identified under para8 graph (1)(A)— 

9 ‘‘(i) review— 

10 ‘‘(I) the assessment of the level 

11 of risk associated with the program 

12 and the quality of the improper pay13 ment estimates and methodology of 

14 the executive agency relating to the 

15 program; and 

16 ‘‘(II) the oversight or financial 

17 controls to identify and prevent im18 proper payments under the program; 

19 and 

20 ‘‘(ii) submit to the appropriate au21 thorizing and appropriations committees of 

22 Congress recommendations, which may be 

23 included in another report submitted by 

24 the Inspector General to Congress, for 

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1 cy relating to the program, including im2 provements for improper payments deter3 mination and estimation methodology. 

4 ‘‘(F) ANNUAL MEETING.—Not less fre5 quently than once every year, the head of each 

6 executive agency with a program identified 

7 under paragraph (1)(A), or a designee of the 

8 head of the executive agency, shall meet with 

9 the Director of the Office of Management and 

10 Budget, or a designee of the Director, to report 

11 on actions taken during the preceding year and 

12 planned actions to prevent improper payments. 

13 ‘‘(c) ESTIMATION OF IMPROPER PAYMENTS.— 

14 ‘‘(1) ESTIMATION.—With respect to each pro15 gram and activity identified under subsection (a)(1), 

16 the head of the relevant executive agency shall— 

17 ‘‘(A) produce a statistically valid estimate, 

18 or an estimate that is otherwise appropriate 

19 using a methodology approved by the Director 

20 of the Office of Management and Budget, of 

21 the improper payments made under the pro22 gram or activity; and 

23 ‘‘(B) include the estimates described in 

24 subparagraph (A) in the accompanying mate25 rials to the annual financial statement of the 


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1 executive agency and as required in applicable 

2 guidance of the Office of Management and 

3 Budget. 

4 ‘‘(2) LACKING OR INSUFFICIENT DOCUMENTA5 TION.— 

6 ‘‘(A) IN GENERAL.—For the purpose of 

7 producing an estimate under paragraph (1), 

8 when the executive agency cannot determine, 

9 due to lacking or insufficient documentation, 

10 whether a payment is proper or not, the pay11 ment shall be treated as an improper payment. 

12 ‘‘(B) SEPARATE REPORT.—The head of an 

13 executive agency may report separately on what 

14 portion of the improper payments estimate for 

15 a program or activity of the executive agency 

16 under paragraph (1) is attributable to lacking 

17 or insufficient documentation. 

18 ‘‘(d) REPORTS ON ACTIONS TO REDUCE IMPROPER

19 PAYMENTS.—With respect to any program or activity of 

20 an executive agency with estimated improper payments 

21 under subsection (c), the head of the executive agency 

22 shall provide with the estimate required under subsection 

23 (c) a report on what actions the executive agency is taking 

24 to reduce improper payments, including— 


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1 ‘‘(1) a description of the causes of the improper 

2 payments, actions planned or taken to correct those 

3 causes, and the planned or actual completion date of 

4 the actions taken to address those causes; 

5 ‘‘(2) in order to reduce improper payments to 

6 a level below which further expenditures to reduce 

7 improper payments would cost more than the 

8 amount those expenditures would save in prevented 

9 or recovered improper payments, a statement of 

10 whether the executive agency has what is needed 

11 with respect to— 

12 ‘‘(A) internal controls; 

13 ‘‘(B) human capital; and 

14 ‘‘(C) information systems and other infra15 structure; 

16 ‘‘(3) if the executive agency does not have suffi17 cient resources to establish and maintain effective 

18 internal controls as described in paragraph (2)(A), a 

19 description of the resources the executive agency has 

20 requested in the budget submission of the executive 

21 agency to establish and maintain those internal con22 trols; 

23 ‘‘(4) program-specific and activity-specific im24 proper payments reduction targets that have been 


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1 approved by the Director of the Office of Manage2 ment and Budget; 

3 ‘‘(5) a description of the steps the executive 

4 agency has taken to ensure that executive agency 

5 managers, programs, and, where appropriate, States 

6 and local governments are held accountable through 

7 annual performance appraisal criteria for— 

8 ‘‘(A) meeting applicable improper pay9 ments reduction targets; and 

10 ‘‘(B) establishing and maintaining suffi11 cient internal controls, including an appropriate 

12 control environment, that effectively— 

13 ‘‘(i) prevent improper payments from 

14 being made; and 

15 ‘‘(ii) promptly detect and recover im16 proper payments that are made; and 

17 ‘‘(6) a description of how the level of planned 

18 or completed actions by the executive agency to ad19 dress the causes of the improper payments matches 

20 the level of improper payments, including a break21 down by category of improper payment and specific 

22 timelines for completion of those actions. 

23 ‘‘(e) REPORTS ON ACTIONS TO RECOVER IMPROPER

24 PAYMENTS.—With respect to improper payments identi25 fied in a recovery audit, the head of the executive agency 


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1 shall provide with the estimate required under subsection 

2 (c) a report on all actions the executive agency is taking 

3 to recover the improper payments, including— 

4 ‘‘(1) a discussion of the methods used by the 

5 executive agency to recover improper payments; 

6 ‘‘(2) the amounts recovered, outstanding, and 

7 determined to not be collectable, including the per8 cent those amounts represent of the total improper 

9 payments of the executive agency; 

10 ‘‘(3) if a determination has been made that cer11 tain improper payments are not collectable, a jus12 tification of that determination; 

13 ‘‘(4) an aging schedule of the amounts out14 standing; 

15 ‘‘(5) a summary of how recovered amounts have 

16 been disposed of; 

17 ‘‘(6) a discussion of any conditions giving rise 

18 to improper payments and how those conditions are 

19 being resolved; and 

20 ‘‘(7) if the executive agency has determined 

21 under subsection (i) that performing recovery audits 

22 for any applicable program or activity is not cost-ef23 fective, a justification for that determination. 


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1 ‘‘(f) GOVERNMENTWIDE REPORTING OF IMPROPER

2 PAYMENTS AND ACTIONS TO RECOVER IMPROPER PAY3 MENTS.— 

4 ‘‘(1) REPORT.—Each fiscal year, the Director 

5 of the Office of Management and Budget shall sub6 mit a report with respect to the preceding fiscal year 

7 on actions that executive agencies have taken to re8 port information regarding improper payments and 

9 actions to recover improper payments to— 

10 ‘‘(A) the Committee on Homeland Security 

11 and Governmental Affairs of the Senate; 

12 ‘‘(B) the Committee on Oversight and Re13 form of the House of Representatives; and 

14 ‘‘(C) the Comptroller General of the 

15 United States. 

16 ‘‘(2) CONTENTS.—Each report required under 

17 paragraph (1) shall include— 

18 ‘‘(A) a summary of the reports of each ex19 ecutive agency on improper payments and re20 covery actions submitted under this section; 

21 ‘‘(B) an identification of the compliance 

22 status of each executive agency, as determined 

23 by the Inspector General of the executive agen24 cy under section 3353, to which this section ap25 plies; 


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1 ‘‘(C) Governmentwide improper payment 

2 reduction targets; 

3 ‘‘(D) a Governmentwide estimate of im4 proper payments; and 

5 ‘‘(E) a discussion of progress made to6 wards meeting Governmentwide improper pay7 ment reduction targets. 

8 ‘‘(g) GUIDANCE BY THE OFFICE OF MANAGEMENT

9 AND BUDGET.— 

10 ‘‘(1) IN GENERAL.—Not later than 1 year after 

11 the date of enactment of this section, the Director 

12 of the Office of Management and Budget shall pre13 scribe guidance for executive agencies to implement 

14 the requirements of this section, which shall not in15 clude any exemptions to those requirements that are 

16 not specifically authorized by this section. 

17 ‘‘(2) CONTENTS.—The guidance under para18 graph (1) shall prescribe— 

19 ‘‘(A) the form of the reports on actions to 

20 reduce improper payments, recovery actions, 

21 and Governmentwide reporting; and 

22 ‘‘(B) strategies for addressing risks and 

23 establishing appropriate prepayment and 

24 postpayment internal controls. 


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1 ‘‘(h) DETERMINATIONS OF AGENCY READINESS FOR

2 OPINION ON INTERNAL CONTROL.—The criteria required 

3 to be developed under section 2(g) of the Improper Pay4 ments Elimination and Recovery Act of 2010, as in effect 

5 on the day before the date of enactment of this section— 

6 ‘‘(1) shall continue to be in effect on and after 

7 the date of enactment of this section; and 

8 ‘‘(2) may be modified as determined appro9 priate by the Director of the Office of Management 

10 and Budget. 

11 ‘‘(i) RECOVERY AUDITS.— 

12 ‘‘(1) IN GENERAL.— 

13 ‘‘(A) CONDUCT OF AUDITS.—Except as 

14 provided under paragraph (3) and if not prohib15 ited under any other provision of law, the head 

16 of each executive agency shall conduct recovery 

17 audits with respect to each program and activ18 ity of the executive agency that expends 

19 $1,000,000 or more annually if conducting the 

20 audits would be cost effective. 

21 ‘‘(B) PROCEDURES.—In conducting a re22 covery audit under this subsection, the head of 

23 an executive agency— 

24 ‘‘(i) shall give priority to the most re25 cent payments and to payments made in 


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1 any program identified as susceptible to 

2 significant improper payments under sub3 section (a); 

4 ‘‘(ii) shall implement this subsection 

5 in a manner designed to ensure the great6 est financial benefit to the Federal Govern7 ment; and 

8 ‘‘(iii) may conduct the recovery audit 

9 directly, by using other departments and 

10 agencies of the United States, or by pro11 curing performance of recovery audits by 

12 private sector sources by contract, subject 

13 to the availability of appropriations, or by 

14 any combination thereof. 

15 ‘‘(C) RECOVERY AUDIT CONTRACTS.—With 

16 respect to a recovery audit procured by an exec17 utive agency by contract— 

18 ‘‘(i) subject to subparagraph (B)(iii), 

19 and except to the extent such actions are 

20 outside the authority of the executive agen21 cy under section 7103 of title 41, the head 

22 of the executive agency may authorize the 

23 contractor to— 


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1 ‘‘(I) notify entities, including in2 dividuals, of potential overpayments 

3 made to those entities; 

4 ‘‘(II) respond to questions con5 cerning potential overpayments; and 

6 ‘‘(III) take other administrative 

7 actions with respect to an overpay8 ment claim made or to be made by 

9 the executive agency; and 

10 ‘‘(ii) the contractor shall not have the 

11 authority to make a final determination re12 lating to whether any overpayment oc13 curred or whether to compromise, settle, or 

14 terminate an overpayment claim. 

15 ‘‘(D) CONTRACT TERMS AND CONDI16 TIONS.— 

17 ‘‘(i) IN GENERAL.—The executive 

18 agency shall include in each contract for 

19 procurement of performance of a recovery 

20 audit a requirement that the contractor 

21 shall— 

22 ‘‘(I) provide to the executive 

23 agency periodic reports on conditions 

24 giving rise to overpayments identified 

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1 ommendations on how to mitigate 

2 those conditions; 

3 ‘‘(II) notify the executive agency 

4 of any overpayments identified by the 

5 contractor pertaining to the executive 

6 agency or to any other executive agen7 cy that are beyond the scope of the 

8 contract; and 

9 ‘‘(III) report to the executive 

10 agency credible evidence of fraud or 

11 vulnerabilities to fraud and conduct 

12 appropriate training of personnel of 

13 the contractor on identification of 

14 fraud. 

15 ‘‘(ii) REPORTS ON ACTIONS TAKEN.— 

16 Each executive agency shall, on an annual 

17 basis, include in annual financial statement 

18 of the executive agency a report on actions 

19 taken by the executive agency during the 

20 preceding fiscal year to address the rec21 ommendations described in clause (i)(I). 

22 ‘‘(E) AGENCY ACTION FOLLOWING NOTIFI23 CATION.—Each executive agency shall— 

24 ‘‘(i) take prompt and appropriate ac25 tion in response to a report or notification 


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1 by a contractor under subclause (I) or (II) 

2 of subparagraph (D)(i) to collect an over3 payment; and 

4 ‘‘(ii) forward to other executive agen5 cies any information that applies to that 

6 executive agency. 

7 ‘‘(2) DISPOSITION OF AMOUNTS RECOVERED.— 

8 ‘‘(A) IN GENERAL.—Amounts collected by 

9 executive agencies each fiscal year through re10 covery audits shall be treated in accordance 

11 with this paragraph. 

12 ‘‘(B) DISTRIBUTION.—The head of an ex13 ecutive agency shall determine the distribution 

14 of collected amounts described in subparagraph 

15 (A), less amounts needed to fulfill the purposes 

16 of section 3562(a) of this title, in accordance 

17 with subparagraphs (C), (D), and (E). 

18 ‘‘(C) USE FOR FINANCIAL MANAGEMENT

19 IMPROVEMENT PROGRAM.—Not more than 25 

20 percent of the amounts collected by an execu21 tive agency through recovery audits— 

22 ‘‘(i) shall be available to the head of 

23 the executive agency to carry out the fi24 nancial management improvement program 


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1 of the executive agency under paragraph 

2 (3); 

3 ‘‘(ii) may be credited, if applicable, for 

4 the purpose described in clause (i) by the 

5 head of an executive agency to any execu6 tive agency appropriations and funds that 

7 are available for obligation at the time of 

8 collection; and 

9 ‘‘(iii) shall be used to supplement and 

10 not supplant any other amounts available 

11 for the purpose described in clause (i) and 

12 shall remain available until expended. 

13 ‘‘(D) USE FOR ORIGINAL PURPOSE.—Not 

14 more than 25 percent of the amounts collected 

15 by an executive agency through recovery au16 dits— 

17 ‘‘(i) shall be credited to the appropria18 tion or fund, if any, available for obligation 

19 at the time of collection for the same gen20 eral purposes as the appropriation or fund 

21 from which the overpayment was made; 

22 ‘‘(ii) shall remain available for the 

23 same period and purposes as the appro24 priation or fund to which credited; and 


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1 ‘‘(iii) if the appropriation from which 

2 an overpayment was made has expired— 

3 ‘‘(I) in the case of recoveries of 

4 overpayments that are made from a 

5 trust or special fund account, shall re6 vert to that account; and 

7 ‘‘(II) in the case of other recov8 eries of overpayments— 

9 ‘‘(aa) for amounts that are 

10 recovered more than 5 fiscal 

11 years from the last fiscal year in 

12 which the funds were available 

13 for obligation, shall be deposited 

14 in the Treasury as miscellaneous 

15 receipts; and 

16 ‘‘(bb) for other amounts, 

17 shall be newly available for the 

18 same time period as the funds 

19 were originally available for obli20 gation. 

21 ‘‘(E) USE FOR INSPECTOR GENERAL AC22 TIVITIES.—Not more than 5 percent of the 

23 amounts collected by an executive agency 

24 through recovery audits— 


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1 ‘‘(i) shall be available to the Inspector 

2 General of that executive agency for— 

3 ‘‘(I) the Inspector General to 

4 carry out this Act; or 

5 ‘‘(II) any other activities of the 

6 Inspector General relating to inves7 tigating improper payments or audit8 ing internal controls associated with 

9 payments; and 

10 ‘‘(ii) shall remain available for the 

11 same period and purposes as the appro12 priation or fund to which credited. 

13 ‘‘(F) REMAINDER.—Amounts collected 

14 that are not applied in accordance with sub15 paragraph (B), (C), (D), or (E) shall be depos16 ited in the Treasury as miscellaneous receipts, 

17 except that in the case of recoveries of overpay18 ments that are made from trust or special fund 

19 accounts, those amounts shall revert to those 

20 accounts. 

21 ‘‘(G) DISCRETIONARY AMOUNTS.—This 

22 paragraph shall apply only to recoveries of over23 payments that are made from discretionary ap24 propriations, as defined in section 250(c)(7) of 

25 the Balanced Budget and Emergency Deficit 


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1 Control Act of 1985 (2 U.S.C. 900(c)(7)), and 

2 shall not apply to recoveries of overpayments 

3 that are made from discretionary amounts that 

4 were appropriated before the date of enactment 

5 of the Improper Payments Elimination and Re6 covery Act of 2010, as in effect on the day be7 fore the date of enactment of this section. 

8 ‘‘(H) APPLICATION.—This paragraph shall 

9 not apply to the recovery of an overpayment if 

10 the appropriation from which the overpayment 

11 was made has not expired. 

12 ‘‘(3) FINANCIAL MANAGEMENT IMPROVEMENT

13 PROGRAM.— 

14 ‘‘(A) REQUIREMENT.—The head of each 

15 executive agency shall conduct a financial man16 agement improvement program consistent with 

17 rules prescribed by the Director of the Office of 

18 Management and Budget. 

19 ‘‘(B) PROGRAM FEATURES.—In conducting 

20 a program described in subparagraph (A), the 

21 head of an executive agency— 

22 ‘‘(i) shall, as the first priority of the 

23 program, address problems that contribute 

24 directly to executive agency improper pay25 ments; and 


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1 ‘‘(ii) may seek to reduce errors and 

2 waste in other executive agency programs 

3 and operations. 

4 ‘‘(4) PRIVACY PROTECTIONS.—Any nongovern5 mental entity that, in the course of recovery auditing 

6 or recovery activity under this subsection, obtains in7 formation that identifies an individual or with re8 spect to which there is a reasonable basis to believe 

9 that the information can be used to identify an indi10 vidual, may not disclose the information for any pur11 pose other than the recovery auditing or recovery ac12 tivity and governmental oversight of the activity, un13 less disclosure for that other purpose is authorized 

14 by the individual to the executive agency that con15 tracted for the performance of the recovery auditing 

16 or recovery activity. 

17 ‘‘(5) RULE OF CONSTRUCTION.—Except as pro18 vided under paragraph (4), nothing in this sub19 section shall be construed as terminating or in any 

20 way limiting authorities that are otherwise available 

21 to executive agencies under existing provisions of law 

22 to recover improper payments and use recovered 

23 amounts. 


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1 ‘‘§ 3353. Compliance 

2 ‘‘(a) ANNUAL COMPLIANCE REPORT BY INSPECTORS

3 GENERAL OF EXECUTIVE AGENCIES.— 

4 ‘‘(1) IN GENERAL.—Each fiscal year, the In5 spector General of each executive agency shall— 

6 ‘‘(A) determine whether the executive 

7 agency is in compliance; and 

8 ‘‘(B) submit a report on the determination 

9 made under subparagraph (A) to— 

10 ‘‘(i) the head of the executive agency; 

11 ‘‘(ii) the Committee on Homeland Se12 curity and Governmental Affairs of the 

13 Senate; 

14 ‘‘(iii) the Committee on Oversight and 

15 Reform of the House of Representatives; 

16 and 

17 ‘‘(iv) the Comptroller General of the 

18 United States. 

19 ‘‘(2) DEVELOPMENT OR USE OF A CENTRAL

20 WEBSITE.—The Council of the Inspectors General 

21 on Integrity and Efficiency (in this subsection re22 ferred to as the ‘Council’) shall develop a public cen23 tral website, or make use of a public central website 

24 in existence on the date of enactment of this section, 

25 to contain individual compliance determination re26 ports issued by Inspectors General under paragraph 


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1 (1)(B) and such additional information as deter2 mined by the Council. 

3 ‘‘(3) OMB GUIDANCE.—Not later than 180 

4 days after the date of enactment of this section, the 

5 Director of the Office of Management and Budget, 

6 in consultation with the Council and with consider7 ation given to the available resources and independ8 ence of individual Offices of Inspectors General, 

9 shall develop and promulgate guidance for the com10 pliance determination reports issued by the Inspec11 tors General under paragraph (1)(B), which shall re12 quire that— 

13 ‘‘(A) the reporting format used by the In14 spectors General is consistent; 

15 ‘‘(B) Inspectors General evaluate and take 

16 into account the adequacy of executive agency 

17 risk assessments, improper payment estimates 

18 methodology, and executive agency action plans 

19 to address the causes of improper payments; 

20 ‘‘(C) Inspectors General take into account 

21 whether the executive agency has correctly iden22 tified the causes of improper payments and 

23 whether the actions of the executive agency to 

24 address those causes are adequate and effective; 


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1 ‘‘(D) Inspectors General evaluate the ade2 quacy of executive agency action plans on how 

3 the executive agency addresses the causes of 

4 improper payments; and 

5 ‘‘(E) as part of the report, Inspectors Gen6 eral include an evaluation of executive agency 

7 efforts to prevent and reduce improper pay8 ments and any recommendations for actions to 

9 further improve that prevention and reduction. 

10 ‘‘(4) CIGIE GUIDANCE.—Not later than 180 

11 days after the date of enactment of this section, the 

12 Council shall, with consideration given to the avail13 able resources and independence of individual Of14 fices of Inspectors General, develop and promulgate 

15 guidance that specifies procedures for compliance 

16 determinations made by the Inspectors General 

17 under paragraph (1)(A), which shall describe proce18 dures for Inspectors General— 

19 ‘‘(A) to make the determinations consistent 

20 regarding compliance; and 

21 ‘‘(B) to evaluate— 

22 ‘‘(i) for compliance with the require23 ment described in section 3351(2)(B), the 

24 risk assessment methodology of the execu25 tive agency, including whether the audits, 


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1 examinations, and legal actions of the In2 spector General indicate a higher risk of 

3 improper payments or actual improper 

4 payments that were not included in the 

5 risk assessments of the executive agency 

6 conducted under section 3352(a); 

7 ‘‘(ii) for compliance with the require8 ment described in section 3351(2)(C), the 

9 accuracy of the rate estimates and whether 

10 the sampling and estimation plan used is 

11 appropriate given program characteristics; 

12 ‘‘(iii) for compliance with the require13 ment described in section 3351(2)(D), the 

14 corrective action plans and whether the 

15 plans are adequate and focused on the true 

16 causes of improper payments, including 

17 whether the corrective action plans are— 

18 ‘‘(I) reducing improper pay19 ments; 

20 ‘‘(II) effectively implemented; 

21 and 

22 ‘‘(III) prioritized within the exec23 utive agency; 


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1 ‘‘(iv) the adequacy of executive agency 

2 action plans to address the causes of im3 proper payments; 

4 ‘‘(v) executive agency efforts to pre5 vent and reduce improper payments, and 

6 any recommendations for actions to fur7 ther improve; and 

8 ‘‘(vi) whether an executive agency has 

9 published an annual financial statement in 

10 accordance with the requirement described 

11 in section 3351(2)(A). 

12 ‘‘(b) REMEDIATION.— 

13 ‘‘(1) NONCOMPLIANCE.— 

14 ‘‘(A) IN GENERAL.—If an executive agency 

15 is determined by the Inspector General of that 

16 executive agency not to be in compliance under 

17 subsection (a) in a fiscal year with respect to a 

18 program or activity, the head of the executive 

19 agency shall submit to the appropriate author20 izing and appropriations committees of Con21 gress a plan describing the actions that the ex22 ecutive agency will take to come into compli23 ance. 

24 ‘‘(B) PLAN.—The plan described in sub25 paragraph (A) shall include— 


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1 ‘‘(i) measurable milestones to be ac2 complished in order to achieve compliance 

3 for each program or activity; 

4 ‘‘(ii) the designation of a senior execu5 tive agency official who shall be account6 able for the progress of the executive agen7 cy in coming into compliance for each pro8 gram or activity; and 

9 ‘‘(iii) the establishment of an account10 ability mechanism, such as a performance 

11 agreement, with appropriate incentives and 

12 consequences tied to the success of the of13 ficial designated under clause (ii) in lead14 ing the efforts of the executive agency to 

15 come into compliance for each program or 

16 activity. 

17 ‘‘(2) NONCOMPLIANCE FOR 2 FISCAL YEARS.— 

18 ‘‘(A) IN GENERAL.—If an executive agency 

19 is determined by the Inspector General of that 

20 executive agency not to be in compliance under 

21 subsection (a) for 2 consecutive fiscal years for 

22 the same program or activity, the executive 

23 agency shall propose to the Director of the Of24 fice of Management and Budget additional proVerDate Sep 11 2014 22:38 May 06, 2019 Jkt 089200 PO 00000 Frm 00035 Fmt 6652 Sfmt 6201 E:\BILLS\S375.RS S375

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1 gram integrity proposals that would help the 

2 executive agency come into compliance. 

3 ‘‘(B) ADDITIONAL FUNDING.— 

4 ‘‘(i) IN GENERAL.—If the Director of 

5 the Office of Management and Budget de6 termines that additional funding would 

7 help an executive agency described in sub8 paragraph (A) come into compliance, the 

9 head of the executive agency shall obligate 

10 additional funding, in an amount deter11 mined by the Director, to intensified com12 pliance efforts. 

13 ‘‘(ii) REPROGRAMMING OR TRANSFER

14 AUTHORITY.—In providing additional fund15 ing under clause (i)— 

16 ‘‘(I) the head of an executive 

17 agency shall use any reprogramming 

18 or transfer authority available to the 

19 executive agency; and 

20 ‘‘(II) if after exercising the re21 programming or transfer authority de22 scribed in subclause (I), additional 

23 funding is necessary to obligate the 

24 full level of funding determined by the 

25 Director of the Office of Management 


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1 and Budget under clause (i), the exec2 utive agency shall submit a request to 

3 Congress for additional reprogram4 ming or transfer authority. 

5 ‘‘(3) REAUTHORIZATION AND STATUTORY PRO6 POSALS.—If an executive agency is determined by 

7 the Inspector General of that executive agency not 

8 to be in compliance under subsection (a) for 3 con9 secutive fiscal years for the same program or activ10 ity, the head of the executive agency shall, not later 

11 than 30 days after the date of that determination, 

12 submit to the appropriate authorizing and appro13 priations committees of Congress and the Comp14 troller General of the United States— 

15 ‘‘(A)(i) reauthorization proposals for each 

16 program or activity that has not been in compli17 ance for 3 or more consecutive fiscal years; and 

18 ‘‘(ii) proposed statutory changes necessary 

19 to bring the program or activity into compli20 ance; or 

21 ‘‘(B) if the head of the executive agency 

22 determines that clauses (i) and (ii) of subpara23 graph (A) will not bring the program or activity 

24 into compliance, a description of the actions 

25 that the executive agency is undertaking to 


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1 bring the program or activity into compliance 

2 and a timeline of when the compliance will be 

3 achieved. 

4 ‘‘(4) PLAN AND TIMELINE FOR COMPLIANCE.— 

5 If an executive agency is determined by the Inspec6 tor General of that executive agency not to be in 

7 compliance under subsection (a) for 4 or more con8 secutive fiscal years for the same program or activ9 ity, the head of the executive agency shall, not later 

10 than 30 days after such determination, submit to 

11 the appropriate authorizing and appropriations com12 mittees of Congress a report that includes— 

13 ‘‘(A) the activities taken to comply with 

14 the requirements for 1, 2, 3, 4, or more years 

15 of noncompliance; 

16 ‘‘(B) a description of any requirements 

17 that were fulfilled for 1, 2, or 3 consecutive 

18 years of noncompliance that are still relevant 

19 and being pursued as a means to bring the pro20 gram or activity into compliance and prevent 

21 and reduce improper payments; 

22 ‘‘(C) a description of any new corrective 

23 actions; and 


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1 ‘‘(D) a timeline for when the program or 

2 activity will achieve compliance based on the ac3 tions described within the report. 

4 ‘‘(5) ANNUAL REPORT.—Each executive agency 

5 shall submit to the appropriate authorizing and ap6 propriations committees of Congress and the Comp7 troller General of the United States— 

8 ‘‘(A) a list of each program or activity that 

9 was determined to not be in compliance under 

10 paragraph (1), (2), (3), or (4); and 

11 ‘‘(B) actions that are planned to bring the 

12 program or activity into compliance. 

13 ‘‘(c) COMPLIANCE ENFORCEMENT PILOT PRO14 GRAMS.—The Director of the Office of Management and 

15 Budget may establish 1 or more pilot programs that shall 

16 test potential accountability mechanisms with appropriate 

17 incentives and consequences tied to success in ensuring 

18 compliance with this section and eliminating improper 

19 payments. 

20 ‘‘(d) IMPROVED ESTIMATES GUIDANCE.—The guid21 ance required to be provided under section 3(b) of the Im22 proper Payments Elimination and Recovery Improvement 

23 Act of 2012, as in effect on the day before the date of 

24 enactment of this section— 


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1 ‘‘(1) shall continue to be in effect on and after 

2 the date of enactment of this section; and 

3 ‘‘(2) may be modified as determined appro4 priate by the Director of the Office of Management 

5 and Budget. 

6 ‘‘§ 3354. Do Not Pay Initiative 

7 ‘‘(a) PREPAYMENT AND PREAWARD PROCEDURES.— 

8 ‘‘(1) IN GENERAL.—Each executive agency shall 

9 review prepayment and preaward procedures and en10 sure that a thorough review of available databases 

11 with relevant information on eligibility occurs to de12 termine program or award eligibility and prevent im13 proper payments before the release of any Federal 

14 funds. 

15 ‘‘(2) DATABASES.—At a minimum and before 

16 issuing any payment or award, each executive agen17 cy shall review as appropriate the following data18 bases to verify eligibility of the payment and award: 

19 ‘‘(A) The death records maintained by the 

20 Commissioner of Social Security. 

21 ‘‘(B) The System for Award Management 

22 Exclusion Records, formerly known as the Ex23 cluded Parties List System, of the General 

24 Services Administration. 


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1 ‘‘(C) The Debt Check Database of the De2 partment of the Treasury. 

3 ‘‘(D) The Credit Alert System or Credit 

4 Alert Interactive Voice Response System of the 

5 Department of Housing and Urban Develop6 ment. 

7 ‘‘(E) The List of Excluded Individuals/En8 tities of the Office of Inspector General of the 

9 Department of Health and Human Services. 

10 ‘‘(F) Information regarding incarcerated 

11 individuals maintained by the Commissioner of 

12 Social Security under sections 202(x) and 

13 1611(e) of the Social Security Act (42 U.S.C. 

14 402(x), 1382(e)). 

15 ‘‘(b) DO NOT PAY INITIATIVE.— 

16 ‘‘(1) IN GENERAL.—There is the Do Not Pay 

17 Initiative, which shall include— 

18 ‘‘(A) use of the databases described in sub19 section (a)(2); and 

20 ‘‘(B) use of other databases designated by 

21 the Director of the Office of Management and 

22 Budget, or the designee of the Director, in con23 sultation with executive agencies and in accord24 ance with paragraph (2). 


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1 ‘‘(2) OTHER DATABASES.—In making designa2 tions of other databases under paragraph (1)(B), the 

3 Director of the Office of Management and Budget, 

4 or the head of any executive agency designated by 

5 the Director, shall— 

6 ‘‘(A) consider any database that substan7 tially assists in preventing improper payments; 

8 and 

9 ‘‘(B) provide public notice and an oppor10 tunity for comment before designating a data11 base under paragraph (1)(B). 

12 ‘‘(3) ACCESS AND REVIEW.— 

13 ‘‘(A) IN GENERAL.—For purposes of iden14 tifying and preventing improper payments, each 

15 executive agency shall have access to, and use 

16 of, the Do Not Pay Initiative to verify payment 

17 or award eligibility in accordance with sub18 section (a). 

19 ‘‘(B) MATCHING PROGRAMS.— 

20 ‘‘(i) IN GENERAL.—The head of the 

21 agency operating the Working System 

22 may, in consultation with the Office of 

23 Management and Budget, waive the re24 quirements of section 552a(o) of title 5 in 

25 any case or class of cases for computer 


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1 matching activities conducted under this 

2 section. 

3 ‘‘(ii) GUIDANCE.—The Director of the 

4 Office of Management and Budget may 

5 issue guidance that establishes require6 ments governing waivers under clause (i). 

7 ‘‘(C) OTHER ENTITIES.—Each State and 

8 any contractor, subcontractor, or agent of a 

9 State, including a State auditor or State pro10 gram responsible for reducing improper pay11 ments of a federally funded State-administered 

12 program, and the judicial and legislative 

13 branches of the United States, as defined in 

14 paragraphs (2) and (3), respectively, of section 

15 202(e) of title 18, shall have access to, and use 

16 of, the Do Not Pay Initiative for the purpose of 

17 verifying payment or award eligibility for pay18 ments. 

19 ‘‘(D) CONSISTENCY WITH PRIVACY ACT OF

20 1974.—To ensure consistency with the principles 

21 of section 552a of title 5 (commonly known as 

22 the ‘Privacy Act of 1974’), the Director of the 

23 Office of Management and Budget may issue 

24 guidance that establishes privacy and other re25 quirements that shall be incorporated into Do 


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1 Not Pay Initiative access agreements with 

2 States, including any contractor, subcontractor, 

3 or agent of a State, and the judicial and legisla4 tive branches of the United States, as defined 

5 in paragraphs (2) and (3), respectively, of sec6 tion 202(e) of title 18. 

7 ‘‘(4) PAYMENT OTHERWISE REQUIRED.—When 

8 using the Do Not Pay Initiative, an executive agency 

9 shall recognize that there may be circumstances 

10 under which the law requires a payment or award to 

11 be made to a recipient, regardless of whether that 

12 recipient is identified as potentially ineligible under 

13 the Do Not Pay Initiative. 

14 ‘‘(5) ANNUAL REPORT.—The Director of the 

15 Office of Management and Budget shall submit to 

16 Congress an annual report, which may be included 

17 as part of another report submitted to Congress by 

18 the Director, regarding the operation of the Do Not 

19 Pay Initiative, which shall— 

20 ‘‘(A) include an evaluation of whether the 

21 Do Not Pay Initiative has reduced improper 

22 payments or improper awards; and 

23 ‘‘(B) provide the frequency of corrections 

24 or identification of incorrect information. 


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1 ‘‘(c) INITIAL WORKING SYSTEM.—The working sys2 tem required to be established under section 5(d) of the 

3 Improper Payments Elimination and Recovery Improve4 ment Act of 2012, as in effect on the day before the date 

5 of enactment of this section— 

6 ‘‘(1) shall continue to be in effect on and after 

7 the date of enactment of this section; and 

8 ‘‘(2) shall require each executive agency to re9 view all payments and awards for all programs and 

10 activities of that executive agency through the work11 ing system. 

12 ‘‘(d) FACILITATING DATA ACCESS BY FEDERAL

13 AGENCIES AND OFFICES OF INSPECTORS GENERAL FOR

14 PURPOSES OF PROGRAM INTEGRITY.— 

15 ‘‘(1) COMPUTER MATCHING BY EXECUTIVE

16 AGENCIES FOR PURPOSES OF INVESTIGATION AND

17 PREVENTION OF IMPROPER PAYMENTS AND

18 FRAUD.— 

19 ‘‘(A) IN GENERAL.—Except as provided in 

20 this paragraph, in accordance with section 552a 

21 of title 5 (commonly known as the ‘Privacy Act 

22 of 1974’), the head of each executive agency 

23 may enter into computer matching agreements 

24 with other heads of executive agencies that 

25 allow ongoing data matching, which shall inVerDate Sep 11 2014 22:38 May 06, 2019 Jkt 089200 PO 00000 Frm 00045 Fmt 6652 Sfmt 6201 E:\BILLS\S375.RS S375

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1 clude automated data matching, in order to as2 sist in the detection and prevention of improper 

3 payments. 

4 ‘‘(B) REVIEW.—Not later than 60 days 

5 after the date on which a proposal for an agree6 ment under subparagraph (A) has been pre7 sented to a Data Integrity Board established 

8 under section 552a(u) of title 5 for consider9 ation, the Data Integrity Board shall respond 

10 to the proposal. 

11 ‘‘(C) TERMINATION DATE.—An agreement 

12 described in subparagraph (A)— 

13 ‘‘(i) shall have a termination date of 

14 less than 3 years; and 

15 ‘‘(ii) during the 3-month period end16 ing on the date on which the agreement is 

17 scheduled to terminate, may be renewed by 

18 the executive agencies entering the agree19 ment for not more than 3 years. 

20 ‘‘(D) MULTIPLE AGENCIES.—For purposes 

21 of this paragraph, section 552a(o)(1) of title 5 

22 shall be applied by substituting ‘between the 

23 source agency and the recipient agency or non24 Federal agency or an agreement governing mul25 tiple agencies’ for ‘between the source agency 


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1 and the recipient agency or non-Federal agency’ 

2 in the matter preceding subparagraph (A). 

3 ‘‘(E) COST-BENEFIT ANALYSIS.—A jus4 tification under section 552a(o)(1)(B) of title 5 

5 relating to an agreement under subparagraph 

6 (A) is not required to contain a specific esti7 mate of any savings under the computer match8 ing agreement. 

9 ‘‘(2) GUIDANCE AND PROCEDURES BY THE OF10 FICE OF MANAGEMENT AND BUDGET.—The guid11 ance, rules, and procedures required to be issued, 

12 clarified, and established under paragraphs (3) and 

13 (4) of section 5(e) of the Improper Payments Elimi14 nation and Recovery Improvement Act of 2012, as 

15 in effect on the day before the date of enactment of 

16 this section— 

17 ‘‘(A) shall continue to be in effect on and 

18 after the date of enactment of this section; and 

19 ‘‘(B) may be modified as determined ap20 propriate by the Director of the Office of Man21 agement and Budget. 

22 ‘‘(3) COMPLIANCE.—The head of each executive 

23 agency, in consultation with the Inspector General of 

24 the executive agency, shall ensure that any informa25 tion provided to an individual or entity under this 


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1 subsection is provided in accordance with protocols 

2 established under this subsection. 

3 ‘‘(4) RULE OF CONSTRUCTION.—Nothing in 

4 this subsection shall be construed— 

5 ‘‘(A) to affect the rights of an individual 

6 under section 552a(p) of title 5; or 

7 ‘‘(B) to impede the exercise of an exemp8 tion provided to Inspectors General or by an ex9 ecutive agency in coordination with an Inspec10 tor General under section 6(j) of the Inspector 

11 General Act of 1978 (5 U.S.C. App.). 

12 ‘‘(e) PLAN TO CURB FEDERAL IMPROPER PAYMENTS

13 TO DECEASED INDIVIDUALS BY IMPROVING THE QUALITY

14 AND USE BY FEDERAL AGENCIES OF THE SOCIAL SECU15 RITY ADMINISTRATION DEATH MASTER FILE AND OTHER

16 DEATH DATA.— 

17 ‘‘(1) ESTABLISHMENT.—In conjunction with 

18 the Commissioner of Social Security and in consulta19 tion with relevant stakeholders that have an interest 

20 in or responsibility for providing the data, and each 

21 State, the Director of the Office of Management and 

22 Budget shall conduct a study and update the plan 

23 required to be established under section 5(g) of the 

24 Improper Payments Elimination and Recovery Im25 provement Act of 2012, as in effect on the day beVerDate Sep 11 2014 22:38 May 06, 2019 Jkt 089200 PO 00000 Frm 00048 Fmt 6652 Sfmt 6201 E:\BILLS\S375.RS S375

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1 fore the date of enactment of this section, for im2 proving the quality, accuracy, and timeliness of 

3 death data maintained by the Social Security Ad4 ministration, including death information reported to 

5 the Commissioner under section 205(r) of the Social 

6 Security Act (42 U.S.C. 405(r)). 

7 ‘‘(2) ADDITIONAL ACTIONS UNDER PLAN.—The 

8 plan described in this subsection shall include rec9 ommended actions by executive agencies to— 

10 ‘‘(A) increase the quality and frequency of 

11 access to the Death Master File and other 

12 death data; 

13 ‘‘(B) achieve a goal of at least daily access 

14 as appropriate; 

15 ‘‘(C) provide for all States and other data 

16 providers to use improved and electronic means 

17 for providing data; 

18 ‘‘(D) identify improved methods by execu19 tive agencies for determining ineligible pay20 ments due to the death of a recipient through 

21 proactive verification means; and 

22 ‘‘(E) address improper payments made by 

23 executive agencies to deceased individuals as 

24 part of Federal retirement programs. 


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1 ‘‘(3) REPORT.—Not later than 120 days after 

2 the date of enactment of this section, the Director 

3 of the Office of Management and Budget shall sub4 mit a report to Congress on the plan described in 

5 this subsection, including recommended legislation. 

6 ‘‘§ 3355. Improving recovery of improper payments 

7 ‘‘The Director of the Office of Management and 

8 Budget shall determine— 

9 ‘‘(1) current and historical rates and amounts 

10 of recovery of improper payments, or, in cases in 

11 which improper payments are identified solely on the 

12 basis of a sample, recovery rates and amounts esti13 mated on the basis of the applicable sample, includ14 ing a list of executive agency recovery audit contract 

15 programs and specific information of amounts and 

16 payments recovered by recovery audit contractors; 

17 and 

18 ‘‘(2) targets for recovering improper payments, 

19 including specific information on amounts and pay20 ments recovered by recovery audit contractors. 

21 ‘‘§ 3356. Improving the use of data by executive agen22 cies for curbing improper payments 

23 ‘‘(a) PROMPT REPORTING OF DEATH INFORMATION

24 BY THE DEPARTMENT OF STATE AND THE DEPARTMENT

25 OF DEFENSE.—The procedure required to be established 


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1 under section 7(a) of the Improper Payments Elimination 

2 and Recovery Improvement Act of 2012, as in effect on 

3 the day before the date of enactment of this section— 

4 ‘‘(1) shall continue to be in effect on and after 

5 the date of enactment of this section; and 

6 ‘‘(2) may be modified as determined appro7 priate by the Director of the Office of Management 

8 and Budget. 

9 ‘‘(b) PROMPT REPORTING OF DEATH INFORMATION

10 BY THE DEPARTMENT OF VETERANS AFFAIRS AND THE

11 OFFICE OF PERSONNEL MANAGEMENT.—Not later than 

12 1 year after the date of enactment of this section, the Sec13 retary of Veterans Affairs and the Director of the Office 

14 of Personnel Management shall establish a procedure 

15 under which the Secretary and the Director— 

16 ‘‘(1) shall promptly and on a regular basis sub17 mit information relating to the deaths of individuals, 

18 including stopped payments data as applicable, to 

19 each executive agency for which the Director of the 

20 Office of Management and Budget determines re21 ceiving and using such information would be rel22 evant and necessary; and 

23 ‘‘(2) to facilitate the centralized access of death 

24 data for the use of reducing improper payments, 

25 may identify additional Federal sources of death 


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1 data and direct the data owner to provide that data 

2 to 1 or more executive agencies for that purpose. 

3 ‘‘(c) GUIDANCE TO EXECUTIVE AGENCIES REGARD4 ING DATA ACCESS AND USE FOR IMPROPER PAYMENTS

5 PURPOSES.—The guidance required to be issued under 

6 section 7(b) of the Improper Payments Elimination and 

7 Recovery Improvement Act of 2012, as in effect on the 

8 day before the date of enactment of this section— 

9 ‘‘(1) shall continue to be in effect on and after 

10 the date of enactment of this section; and 

11 ‘‘(2) may be modified as determined appro12 priate by the Director of the Office of Management 

13 and Budget. 

14 ‘‘§ 3357. Financial and administrative controls relat15 ing to fraud and improper payments 

16 ‘‘(a) DEFINITION.—In this section, the term ‘agency’ 

17 has the meaning given the term in section 551 of title 5. 

18 ‘‘(b) GUIDELINES.—The guidelines required to be es19 tablished under section 3(a) of the Fraud Reduction and 

20 Data Analytics Act of 2015, as in effect on the day before 

21 the date of enactment of this section— 

22 ‘‘(1) shall continue to be in effect on and after 

23 the date of enactment of this section; and 

24 ‘‘(2) may be periodically modified by the Direc25 tor of the Office of Management and Budget, in conVerDate Sep 11 2014 22:38 May 06, 2019 Jkt 089200 PO 00000 Frm 00052 Fmt 6652 Sfmt 6201 E:\BILLS\S375.RS S375

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1 sultation with the Comptroller General of the United 

2 States, as the Director and Comptroller General may 

3 determine necessary. 

4 ‘‘(c) REQUIREMENTS FOR CONTROLS.—The guide5 lines described in subsection (b) shall include— 

6 ‘‘(1) conducting an evaluation of fraud risks 

7 and using a risk-based approach to design and im8 plement financial and administrative control activi9 ties to mitigate identified fraud risks; 

10 ‘‘(2) collecting and analyzing data from report11 ing mechanisms on detected fraud to monitor fraud 

12 trends and using that data and information to con13 tinuously improve fraud prevention controls; and 

14 ‘‘(3) using the results of monitoring, evaluation, 

15 audits, and investigations to improve fraud preven16 tion, detection, and response. 

17 ‘‘(d) REPORT.—For each of fiscal years 2019 and 

18 2020, each agency shall submit to Congress, as part of 

19 the annual financial report of the agency, a report of the 

20 agency on— 

21 ‘‘(1) implementing— 

22 ‘‘(A) the financial and administrative con23 trols described in subsection (b); 

24 ‘‘(B) the fraud risk principle in the Stand25 ards for Internal Control in the Federal GovVerDate Sep 11 2014 22:38 May 06, 2019 Jkt 089200 PO 00000 Frm 00053 Fmt 6652 Sfmt 6201 E:\BILLS\S375.RS S375

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1 ernment published by the Government Account2 ability Office (commonly known as the ‘Green 

3 Book’); and 

4 ‘‘(C) Office of Management and Budget 

5 Circular A–123, or any successor thereto, with 

6 respect to the leading practices for managing 

7 fraud risk; 

8 ‘‘(2) identifying risks and vulnerabilities to 

9 fraud, including with respect to payroll, beneficiary 

10 payments, grants, large contracts, and purchase and 

11 travel cards; and 

12 ‘‘(3) establishing strategies, procedures, and 

13 other steps to curb fraud. 

14 ‘‘§ 3358. Interagency working group for Government15 wide payment integrity improvement 

16 ‘‘(a) WORKING GROUP.— 

17 ‘‘(1) ESTABLISHMENT.—Not later than 90 days 

18 after the date of enactment of this section, there is 

19 established an interagency working group on pay20 ment integrity— 

21 ‘‘(A) to improve— 

22 ‘‘(i) State-administered Federal pro23 grams to determine eligibility processes 

24 and data sharing practices; 


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1 ‘‘(ii) the guidelines described in sec2 tion 3357(b) and other best practices and 

3 techniques for detecting, preventing, and 

4 responding to improper payments, includ5 ing improper payments that are the result 

6 of fraud; and 

7 ‘‘(iii) the sharing and development of 

8 data analytics techniques to help prevent 

9 and identify potential improper payments, 

10 including those that are the result of 

11 fraud; and 

12 ‘‘(B) to identify any additional activities 

13 that will improve payment integrity of Federal 

14 programs. 

15 ‘‘(2) COMPOSITION.—The interagency working 

16 group established under paragraph (1) shall be com17 posed of— 

18 ‘‘(A) the Director of the Office of Manage19 ment and Budget; 

20 ‘‘(B) 1 representative from each of the 

21 agencies described in paragraphs (1) and (2) of 

22 section 901(b) of this title; and 

23 ‘‘(C) any other representatives of other ex24 ecutive agencies determined appropriate by the 

25 Director of the Office of Management and 


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1 Budget, which may include the Chief Informa2 tion Officer, the Chief Procurement Officer, the 

3 Chief Risk Officer, or the Chief Operating Offi4 cer of an executive agency. 

5 ‘‘(b) CONSULTATION.—The working group estab6 lished under subsection (a)(1) may consult with Offices 

7 of Inspectors General and Federal and non-Federal ex8 perts on fraud risk assessments, administrative controls 

9 over payment integrity, financial controls, and other rel10 evant matters. 

11 ‘‘(c) MEETINGS.—The working group established 

12 under subsection (a)(1) shall hold not fewer than 4 meet13 ings per year. 

14 ‘‘(d) REPORT.—Not later than 240 days after the 

15 date of enactment of this section, the working group estab16 lished under subsection (a)(1) shall submit to Congress 

17 a report that includes— 

18 ‘‘(1) a plan containing tangible solutions to pre19 vent and reduce improper payments; and 

20 ‘‘(2) a plan for State agencies to work with 

21 Federal agencies to regularly review lists of bene22 ficiaries of State-managed Federal programs for du23 plicate enrollment between States, including how the 

24 Do Not Pay Business Center and the data analytics 


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1 initiative of the Department of the Treasury could 

2 aid in the detection of duplicate enrollment.’’. 

3 (b) TECHNICAL AND CONFORMING AMENDMENT.— 

4 The table of sections for chapter 33 of title 31, United 

5 States Code, is amended by adding at the end the fol6 lowing: 

‘‘SUBCHAPTER IV—IMPROPER PAYMENTS

‘‘3351. Definitions. 

‘‘3352. Estimates of improper payments and reports on actions to reduce improper payments. 

‘‘3353. Compliance. 

‘‘3354. Do Not Pay Initiative. 

‘‘3355. Improving recovery of improper payments. 

‘‘3356. Improving the use of data by executive agencies for curbing improper 

payments. 

‘‘3357. Financial and administrative controls relating to fraud and improper 

payments. 

‘‘3358. Interagency working group for Governmentwide payment integrity improvement.’’. 

7 SEC. 3. REPEALS. 

8 (a) IN GENERAL.— 

9 (1) IMPROPER PAYMENTS INFORMATION ACT OF

10 2002.—The Improper Payments Information Act of 

11 2002 (31 U.S.C. 3321 note) is repealed. 

12 (2) IMPROPER PAYMENTS ELIMINATION AND

13 RECOVERY ACT OF 2010.—The Improper Payments 

14 Elimination and Recovery Act of 2010 (Public Law 

15 114–204; 124 Stat. 2224) is repealed. 

16 (3) IMPROPER PAYMENTS ELIMINATION AND

17 RECOVERY IMPROVEMENT ACT OF 2012.—The Im18 proper Payments Elimination and Recovery ImVerDate Sep 11 2014 22:38 May 06, 2019 Jkt 089200 PO 00000 Frm 00057 Fmt 6652 Sfmt 6201 E:\BILLS\S375.RS S375

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1 provement Act of 2012 (31 U.S.C. 3321 note) is re2 pealed. 

3 (4) FRAUD REDUCTION AND DATA ANALYTICS

4 ACT OF 2015.—The Fraud Reduction and Data Ana5 lytics Act of 2015 (31 U.S.C. 3321 note) is repealed. 

6 (b) TECHNICAL AND CONFORMING AMENDMENTS.— 

7 (1) GOVERNMENT CHARGE CARD ABUSE PRE8 VENTION ACT OF 2012.—Section 6(a) of the Govern9 ment Charge Card Abuse Prevention Act of 2012 (5 

10 U.S.C. 5701 note) is amended by striking ‘‘section 

11 3512 of title 31, United States Code, or in the Im12 proper Payments Information Act of 2002 (31 

13 U.S.C. 3321 note)’’ and inserting ‘‘section 3512 or 

14 subchapter IV of chapter 33 of title 31, United 

15 States Code’’. 

16 (2) HOMELAND SECURITY ACT OF 2002.—Sec17 tion 2022(a) of the Homeland Security Act of 2002 

18 (6 U.S.C. 612(a)) is amended— 

19 (A) in paragraph (1)(C), by striking ‘‘Con20 sistent with the Improper Payments Informa21 tion Act of 2002 (31 U.S.C. 3321 note)’’ and 

22 inserting ‘‘Consistent with subchapter IV of 

23 chapter 33 of title 31, United States Code’’; 

24 and 


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1 (B) in paragraph (5), by striking ‘‘section 

2 2(h) of the Improper Payments Elimination 

3 and Recovery Act of 2010 (31 U.S.C. 3321 

4 note)’’ and inserting ‘‘section 3352(i) of title 

5 31, United States Code,’’. 

6 (3) SOCIAL SECURITY ACT.—Section 2105 of 

7 the Social Security Act (42 U.S.C. 1397ee(c)) is 

8 amended by striking ‘‘Improper Payments Informa9 tion Act of 2002’’ each place that term appears and 

10 inserting ‘‘subchapter IV of chapter 33 of title 31, 

11 United States Code’’. 

12 (4) TITLE 31.—Section 3562(a) of title 31, 

13 United States Code, is amended— 

14 (A) in the matter preceding paragraph 

15 (1)— 

16 (i) by striking ‘‘section 3561’’ and in17 serting ‘‘section 3352(i)’’; and 

18 (ii) by striking ‘‘agency for the fol19 lowing purposes:’’ and all that follows 

20 through ‘‘To reimburse’’ and inserting 

21 ‘‘agency to reimburse’’; and 

22 (B) by striking paragraph (2). 


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Calendar No. 76 

116TH CONGRESS 

1ST SESSION S. 375 

[Report No. 116–35] 

A BILL 

To improve efforts to identify and reduce Governposes. mentwide improper payments, and for other purMAY 6, 2019 

Reported without amendment 


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