Reducing Improper Payments

2009-11-25Executive Order 13520
Signed by: Barack Obama
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Headline: Federal Agencies Ordered to Reduce Improper Payments and Fraud

What it does: Agencies must identify high-improper-payment programs, set reduction targets, publicly report results, and strengthen recovery and prevention efforts.

Real World Impact:
  • Public reporting of improper payment rates and recovery actions for high-priority programs.
  • Agencies and inspectors must increase audits, reporting, and corrective plans for problem programs.
  • Contractors and entities may face penalties, debarment, or public identification for overpayments.
Topics: government spending, fraud prevention, financial oversight, contractor accountability, state and local audits

Summary

This order requires the federal government to reduce improper payments—money paid in error, waste, or fraud—by focusing on the programs that cause the most losses. It establishes public reporting, measurable targets, and new oversight steps to find and recover improper payments.

Federal agencies, the Treasury, the Justice Department, inspectors general, contractors, and state and local governments are affected. The order aims to protect program access for eligible beneficiaries while increasing transparency, accountability, recovery efforts, and information-sharing to prevent future overpayments.

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