The Executive Order on Improper Payments

The Presidential Executive Order - Reducing Improper Payments and Eliminating Waste in Federal Programs was released on November 23, 2009. This began a new era in the federal government's fight against improper payments. This white paper provides a practical look at what government agencies can do to address the presidential call for action.

The Improper Payments Information Act (IPIA) of 2002, which requires annual estimates of improper payments, has helped frame the issue and the magnitude of the problem. The ensuing efforts to improve the tracking of improper payments led to the Presidential Executive Order. It is expected that federal agencies will take actions to reduce improper payments significantly.

To do so, agencies may need to "think outside the box" to identify changes in business processes. In some cases, this may include leveraging available technology and proven management practices. These technology and management practices include new techniques, such as continuous monitoring and auditing, data-sharing, and improved technology tools. These can help mitigate the risk of improper payments by enhancing detection and prevention before they occur and by enhancing the likelihood and degree of recovery once detected.