Finding And Recapturing Improper Payments, 12119-12120 [2010-5685]
Download as PDF
12119
Presidential Documents
Federal Register
Vol. 75, No. 49
Monday, March 15, 2010
Title 3—
Memorandum of March 10, 2010
The President
Finding And Recapturing Improper Payments
Memorandum for the Heads of Executive Departments and Agencies
My Administration is committed to reducing payment errors and eliminating
waste, fraud, and abuse in Federal programs—a commitment reflected in
Executive Order 13520 of November 20, 2009, Reducing Improper Payments.
Executive departments and agencies should use every tool available to identify and subsequently reclaim the funds associated with improper payments.
Thorough identification of improper payments promotes accountability at
executive departments and agencies; it also makes the integrity of Federal
spending transparent to taxpayers. Reclaiming the funds associated with
improper payments is a critical component of the proper stewardship and
protection of taxpayer dollars, and it underscores that waste, fraud, and
abuse by entities receiving Federal payments will not be tolerated.
erowe on DSK5CLS3C1PROD with MISCELLANEOUS
Today, to further intensify efforts to reclaim improper payments, my Administration is expanding the use of ‘‘Payment Recapture Audits,’’ which have
proven to be effective mechanisms for detecting and recapturing payment
errors. A Payment Recapture Audit is a process of identifying improper
payments paid to contractors or other entities whereby highly skilled accounting specialists and fraud examiners use state-of-the-art tools and technology
to examine payment records and uncover such problems as duplicate payments, payments for services not rendered, overpayments, and fictitious
vendors. (A Payment Recapture Audit as used in this memorandum shall
have the same meaning as the term ‘‘recovery audit’’ as defined in Appendix
C to Office of Management and Budget Circular A-123.) One approach that
has worked effectively is using professional and specialized auditors on
a contingency basis, with their compensation tied to the identification of
misspent funds.
Therefore, I hereby direct executive departments and agencies to expand
their use of Payment Recapture Audits, to the extent permitted by law
and where cost-effective. The Director of the Office of Management and
Budget (OMB) shall develop guidance within 90 days of the date of this
memorandum on actions executive departments and agencies must take
to carry out the requirements of this memorandum. The guidance may
require additional actions and strategies designed to improve the recapture
of improper payments, including, as appropriate, agency-specific targets for
increasing recoveries. The Director of the OMB shall further coordinate
with the Council for Inspectors General on Integrity and Efficiency to identify
an appropriate process for obtaining review by Inspectors General of the
effectiveness of agency efforts under this memorandum. The agencies’ expanded use of Payment Recapture Audits does not preclude Offices of Inspectors General from performing any activities to identify and prevent improper
payments.
Nothing in this memorandum shall be construed to require the disclosure
of classified information, law enforcement sensitive information, or other
information that must be protected in the interests of national security.
This memorandum is not intended to, and does not, create any right or
benefit, substantive or procedural, enforceable at law or in equity by any
party against the United States, its departments, agencies, or entities, its
officers, employees, or agents, or any other person.
VerDate Nov<24>2008
07:38 Mar 12, 2010
Jkt 220001
PO 00000
Frm 00001
Fmt 4705
Sfmt 4790
E:\FR\FM\15MRO0.SGM
15MRO0
12120
Federal Register / Vol. 75, No. 49 / Monday, March 15, 2010 / Presidential Documents
The Director of the OMB is hereby authorized and directed to publish
this memorandum in the Federal Register.
THE WHITE HOUSE,
WASHINGTON, March 10, 2010
[FR Doc. 2010–5685
Filed 3–12–10; 8:45 am]
VerDate Nov<24>2008
07:38 Mar 12, 2010
Jkt 220001
PO 00000
Frm 00002
Fmt 4705
Sfmt 4790
E:\FR\FM\15MRO0.SGM
15MRO0
OB#1.EPS
erowe on DSK5CLS3C1PROD with MISCELLANEOUS
Billing code 3110–01–P
Agencies
[Federal Register Volume 75, Number 49 (Monday, March 15, 2010)]
[Presidential Documents]
[Pages 12119-12120]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-5685]
Presidential Documents
Federal Register / Vol. 75, No. 49 / Monday, March 15, 2010 /
Presidential Documents
___________________________________________________________________
Title 3--
The President
[[Page 12119]]
Memorandum of March 10, 2010
Finding And Recapturing Improper Payments
Memorandum for the Heads of Executive Departments and
Agencies
My Administration is committed to reducing payment
errors and eliminating waste, fraud, and abuse in
Federal programs--a commitment reflected in Executive
Order 13520 of November 20, 2009, Reducing Improper
Payments. Executive departments and agencies should use
every tool available to identify and subsequently
reclaim the funds associated with improper payments.
Thorough identification of improper payments promotes
accountability at executive departments and agencies;
it also makes the integrity of Federal spending
transparent to taxpayers. Reclaiming the funds
associated with improper payments is a critical
component of the proper stewardship and protection of
taxpayer dollars, and it underscores that waste, fraud,
and abuse by entities receiving Federal payments will
not be tolerated.
Today, to further intensify efforts to reclaim improper
payments, my Administration is expanding the use of
``Payment Recapture Audits,'' which have proven to be
effective mechanisms for detecting and recapturing
payment errors. A Payment Recapture Audit is a process
of identifying improper payments paid to contractors or
other entities whereby highly skilled accounting
specialists and fraud examiners use state-of-the-art
tools and technology to examine payment records and
uncover such problems as duplicate payments, payments
for services not rendered, overpayments, and fictitious
vendors. (A Payment Recapture Audit as used in this
memorandum shall have the same meaning as the term
``recovery audit'' as defined in Appendix C to Office
of Management and Budget Circular A-123.) One approach
that has worked effectively is using professional and
specialized auditors on a contingency basis, with their
compensation tied to the identification of misspent
funds.
Therefore, I hereby direct executive departments and
agencies to expand their use of Payment Recapture
Audits, to the extent permitted by law and where cost-
effective. The Director of the Office of Management and
Budget (OMB) shall develop guidance within 90 days of
the date of this memorandum on actions executive
departments and agencies must take to carry out the
requirements of this memorandum. The guidance may
require additional actions and strategies designed to
improve the recapture of improper payments, including,
as appropriate, agency-specific targets for increasing
recoveries. The Director of the OMB shall further
coordinate with the Council for Inspectors General on
Integrity and Efficiency to identify an appropriate
process for obtaining review by Inspectors General of
the effectiveness of agency efforts under this
memorandum. The agencies' expanded use of Payment
Recapture Audits does not preclude Offices of
Inspectors General from performing any activities to
identify and prevent improper payments.
Nothing in this memorandum shall be construed to
require the disclosure of classified information, law
enforcement sensitive information, or other information
that must be protected in the interests of national
security.
This memorandum is not intended to, and does not,
create any right or benefit, substantive or procedural,
enforceable at law or in equity by any party against
the United States, its departments, agencies, or
entities, its officers, employees, or agents, or any
other person.
[[Page 12120]]
The Director of the OMB is hereby authorized and
directed to publish this memorandum in the Federal
Register.
(Presidential Sig.)
THE WHITE HOUSE,
WASHINGTON, March 10, 2010
[FR Doc. 2010-5685
Filed 3-12-10; 8:45 am]
Billing code 3110-01-P