0
STEP Act
2/11/2025, 5:53 AM
Summary of Bill S 80
The bill includes provisions to strengthen the processes and procedures for identifying and preventing improper payments. It requires federal agencies to conduct risk assessments to determine where improper payments are most likely to occur and develop strategies to mitigate these risks. Additionally, the bill mandates that agencies regularly review and update their procedures for detecting and recovering improper payments.
Furthermore, the bill establishes requirements for agencies to report on their efforts to prevent improper payments, including the amount of improper payments identified and recovered. It also requires agencies to implement measures to address the root causes of improper payments and improve the accuracy of payment data. Overall, Bill 119 s 80 aims to enhance accountability and transparency in government spending by reducing the occurrence of improper payments. By implementing stronger prevention measures and reporting requirements, the bill seeks to ensure that taxpayer dollars are used efficiently and effectively.
Congressional Summary of S 80
Safeguarding the Transparency and Efficiency of Payments Act or the STEP Act
This bill requires federal agencies to take certain actions to prevent improper payments (i.e., payments that should not have been made or were made in an incorrect amount).
The bill requires agencies to annually identify as susceptible to significant improper payments any new program or activity that is in its first four years of operation and has, or is expected to have, outlays exceeding $100 million in any of its first three fiscal years of operation, with exceptions for activities that are not susceptible to significant improper payments. (Agencies must report estimates of improper payments for activities identified as susceptible.)
The bill allows agencies, when estimating improper payments, to use an estimation methodology approved by the agency's chief financial officer (CFO). (Currently, only methodologies approved by the Office of Management and Budget may be used.)
An agency’s annual financial statement must include certain reports related to the agency’s improper payments. Such reports must also include a certification by the agency CFO that the identification of programs and activities susceptible to significant improper payments is reliable as well as a description of the CFO's actions to monitor required corrective action plans.
Each agency must report to Congress for each of the 10 fiscal years after enactment on certain matters, including progress in managing fraud risks and implementing financial controls.
