Reducing Improper Payments (E.O. 13520)

Summary

Creates policies to stop the government from making wrong payments, which helps to reduce waste, fraud, and abuse in federal programs.

What problem does this solve?

The Federal Government sometimes makes mistakes when paying people and businesses, leading to waste and fraud. This order creates new rules for government agencies to track, report, and reduce these wrong payments, making them more accountable.

What does this order do?

Identifies high-priority programs for review

Requires the Office of Management and Budget (OMB) to find the federal programs that make the most incorrect payments and set goals for reducing them.

Creates a public website to track improper payments

Directs the Secretary of the Treasury to create a website for the public to see data on incorrect payments, who received them, and the government's goals for fixing the problem.

Assigns an official to be accountable for reducing errors

Requires each agency with a high-priority program to name a specific, high-level official who is responsible for meeting the goals to reduce improper payments.

Establishes a public tip line for fraud

Orders the creation of a central website where the public can report suspected cases of waste, fraud, and abuse involving federal money.

Increases accountability for government contractors

Directs a council to recommend new rules to hold contractors responsible for improper payments, which could include being banned from future contracts or paying fines.

Creates working groups with state and local governments

Forms groups of federal, state, and local officials to find better ways to audit federal funds and hold state and local partners accountable for reducing payment errors.

Who does this affect?

Federal government agencies
Recipients of federal payments (including individuals, businesses, and contractors)
State and local governments

What is the real world impact?

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Increases government efficiency and saves taxpayer money

Establishes clear goals and holds agencies responsible for cutting down on payment mistakes, fraud, and waste. This helps ensure that tax dollars are spent correctly and not lost to errors or abuse.

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Improves public trust in government

Makes information about incorrect payments public on a website. This transparency shows people that the government is aware of the problem and is actively working to fix it.

When does this start?

This order sets several deadlines for federal agencies to take action, beginning shortly after its signing on November 20, 2009.

Establishment of working groups

Within 30 days, the Director of OMB must create working groups with state and local officials to improve audits and accountability.

Identification of high-priority programs

Within 90 days, the Director of OMB must identify federal programs with the highest improper payments and set reduction targets.

Designation of accountable officials

Within 120 days, agency heads must designate a specific official to be accountable for reducing improper payments.

Launch of public website and tip line

Within 180 days, the Secretary of the Treasury must launch a public website with payment data and a central way for the public to report fraud.

Recommendations on contractor accountability

Within 180 days, the Federal Acquisition Regulatory Council must recommend actions to hold contractors accountable for improper payments.