Summary
Changes rules for government agencies to better find and stop payments that cause the government to lose money, especially from fraud.
What problem does this solve?
Government agencies spend time tracking all incorrect payments, even small mistakes that don't lose money. This bill makes agencies focus only on stopping payments that cause a real financial loss, especially from fraud.
What does this bill do?
Narrows the definition of improper payments
Changes the focus to only include payments that result in a 'financial loss to the Government'. This excludes payments that were for the right amount to the right person but had procedural mistakes.
Requires new risk assessment guidance
Directs the Secretary of the Treasury to create new guidance for agencies to assess the risk of improper payments that cause financial loss.
Changes reporting frequency
Reduces the frequency of some agency reports on improper payments from annually to at least once every three years.
Reference
Text:
Section:
Sec. 2(b)(3)(C)(v)
Header:
Agency liaison designation and mandatory coordination meetings
Mandates fraud prevention liaisons
Requires agencies with high-priority programs to name a senior official to meet yearly with budget and treasury officials to discuss fraud prevention.
Adds new reporting requirements
Requires agency reports to separate estimates of payments that cause financial loss from those that do not, and to assess how much loss is due to fraud.
Who does this affect?
- Federal executive agencies
- Government employees managing payments
- Inspectors General
What is the real world impact?
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Increases efficiency in fighting fraud
Focuses government resources on preventing payments that cause actual financial loss, rather than on minor administrative errors. This could lead to more effective use of taxpayer money to stop significant waste and fraud.
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Reduces transparency of government spending
Changes some reporting requirements from every year to every three years. This could make it harder for the public and Congress to track incorrect payments and hold agencies accountable in a timely manner.
When does this start?
The bill would take effect when it becomes law, with specific deadlines for certain actions.
Risk assessment guidance development
The Secretary of the Treasury must develop risk assessment guidance no later than one year after the bill becomes law.
Agency risk assessment implementation
Agencies must conduct a risk assessment using the new guidance within six months after the guidance is issued.