S. 747: Improper Payments Transparency Act

The Improper Payments Transparency Act aims to increase transparency and accountability in federal financial programs by requiring detailed reporting on improper payments. Here’s a breakdown of its main components:

Definition of Improper Payments

The term "improper payment" refers to payments made by federal agencies that should not have been made or that were made in an incorrect amount. This includes payments that are made to the wrong person, errors in the payment amount, or payments made without the necessary documentation.

Budget Reporting Requirements

The bill requires that, as part of the President’s budget submission to Congress, information about improper payments must be included. This information will encompass:

• Improper Payment Amounts and Rates: Agencies must detail the total amounts and rates of improper payments for various programs and activities.
• Narrative Description: A comprehensive explanation is required, addressing:
  • Trends in improper payment amounts and rates for programs over the last three years, including any increases or decreases.
  • Programs with stable improper payment amounts and rates over the same period.
• Corrective Actions: Agencies must report any ongoing corrective actions related to improper payments and outline plans to resolve issues that lead to improper payments.

Accountability and Transparency

The goal of the legislation is to ensure that federal agencies take responsibility for improper payments and to incentivize them to improve their processes. By mandating detailed reporting, it aims to provide Congress and the public with greater visibility into the financial integrity of federal programs.

Expected Outcomes

This legislation is intended to reduce the occurrence of improper payments by requiring federal agencies to actively monitor and address issues. The hope is that by having to provide detailed reports, agencies will prioritize correcting errors and implementing reforms.

Relevant Companies

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