Virginia Foxx Questions Agencies on Improper Payment Prevention and Recovery

The Payment Integrity Information Act

• 📌 The Payment Integrity Information Act mandates agencies use specific databases, like the "Do Not Pay" system, to prevent improper payments before funds are released.
• ⚠️ Despite this legal requirement, agencies like the Department of Transportation have been found not utilizing the Do Not Pay portal in their prepayment processes.

Improving the Do Not Pay System

• 💡 To enhance the "Do Not Pay" system, it's crucial to ensure it includes the full Death Master File and all other relevant data sources for completeness and reliability.
• 📊 A potential improvement involves shifting agency reporting from focusing on past failures to proactive prevention, such as tracking instances where flagged payments are still processed.

Recovering Improper Payments

• 💰 Agencies are required to attempt recovery of improper payments, but the decision to pursue recovery is often based on cost-benefit analysis.
• ⚖️ New tools like the Administrative False Claims Act offer agencies more rigorous processes for recovery, but judicial system recovery (pay and chase) is described as exorbitantly expensive.

Preventing Improper Payments

• 🎯 The primary focus should be on preventing payments from going out in the first place, utilizing available tools.
• 🧠 Technology, including artificial intelligence, can be part of the solution, but only if it's fed with accurate and reliable data.
• 🔑 A strong culture of ownership and risk assessment within agencies is essential, alongside technological solutions, to mitigate risks and prevent improper payments.