Enhancing Payment Accuracy Through a ``Do Not Pay List'', 35953-35954 [2010-15412]

Agencies

• Executive Office of the President

[Federal Register Volume 75, Number 120 (Wednesday, June 23, 2010)]
[Presidential Documents]
[Pages 35953-35954]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-15412]




                        Presidential Documents 



Federal Register / Vol. 75, No. 120 / Wednesday, June 23, 2010 / 
Presidential Documents

[[Page 35953]]


                Memorandum of June 18, 2010

                
Enhancing Payment Accuracy Through a ``Do Not Pay 
                List''

                Memorandum for the Heads of Executive Departments and 
                Agencies

                My Administration is committed to eliminating waste, 
                fraud, and abuse in Federal programs, including 
                reducing and recapturing erroneous payments--a 
                commitment I reinforced in Executive Order 13520 of 
                November 20, 2009, and in a memorandum to the heads of 
                executive departments and agencies (agencies) of March 
                10, 2010. While identifying and recapturing improper 
                payments is important, prevention of payment errors 
                before they occur should be the first priority in 
                protecting taxpayer resources from waste, fraud, and 
                abuse. In those cases where data available to agencies 
                clearly shows that a potential recipient of a Federal 
                payment is ineligible for it, subsequent payment to 
                that recipient is unacceptable. We must ensure that 
                such payments are not made.

                Agencies maintain many databases containing information 
                on a recipient's eligibility to receive Federal 
                benefits payments or Federal awards, such as grants and 
                contracts. By checking these databases before making 
                payments or awards, agencies can identify ineligible 
                recipients and prevent certain improper payments from 
                being made in the first place.

                Therefore, I hereby direct agencies to review current 
                pre-payment and pre-award procedures and ensure that a 
                thorough review of available databases with relevant 
                information on eligibility occurs before the release of 
                any Federal funds, to the extent permitted by law. At a 
                minimum, agencies shall, before payment and award, 
                check the following existing databases (where 
                applicable and permitted by law) to verify eligibility: 
                the Social Security Administration's Death Master File, 
                the General Services Administration's Excluded Parties 
                List System, the Department of the Treasury's Debt 
                Check Database, the Department of Housing and Urban 
                Development's Credit Alert System or Credit Alert 
                Interactive Voice Response System, and the Department 
                of Health and Human Services' Office of Inspector 
                General's List of Excluded Individuals/Entities. This 
                network of databases, and additional databases so 
                designated by the Director of the Office of Management 
                and Budget (OMB) in consultation with agencies, shall 
                be collectively known as the ``Do Not Pay List.'' This 
                memorandum requires agencies to review these databases 
                with the recognition that there may be circumstances 
                when the law nevertheless requires a payment or award 
                to be made to a recipient listed in them. My 
                Administration began coordination of the databases 
                discussed in this memorandum in April 2010 by launching 
                the Federal Awardee Performance and Integrity 
                Information System (FAPIIS), which integrates various 
                sources of information on the eligibility of Government 
                contractors for award. No later than 120 days of the 
                date of this memorandum, the Director of the OMB shall 
                provide to the President a plan for completing 
                integration for the remaining databases, to the extent 
                permitted by law, so that agencies can access them 
                through a single entry point.

                Each agency shall, within 90 days of the date of this 
                memorandum, submit to the OMB a plan that includes 
                information on its current pre-payment and pre-award 
                procedures and a list of databases that the agency 
                checks pursuant to those procedures. Within 180 days of 
                the date of this memorandum, the Director of the OMB 
                shall issue guidance, to be developed in consultation 
                with affected agencies and taking into account current 
                agency pre-payment and pre-award practices, on actions 
                agencies must take to carry

[[Page 35954]]

                out this memorandum's requirements. This guidance shall 
                clarify that the head of each agency is responsible for 
                ensuring an efficient and accurate process for 
                determining whether the information provided on the 
                ``Do Not Pay List'' is sufficient to stop a payment, 
                consistent with applicable laws and regulations, and, 
                if so, whether a payment should be stopped under the 
                circumstances. In addition, this guidance shall 
                identify best practices and databases that agencies 
                should utilize to conduct pre-payment checks to ensure 
                that only eligible recipients receive Government 
                benefits or payments.

                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.

                The Director of the OMB is hereby authorized and 
                directed to publish this memorandum in the Federal 
                Register.
                
                
                    (Presidential Sig.)

                THE WHITE HOUSE,

                    Washington, June 18, 2010

[FR Doc. 2010-15412
Filed 6-22-10; 11:15 am]
Billing code 3110-01-P