Preventing and Reducing Improper Payments
Overview
On June 18, 2010, the President issued an Executive Memorandum directing agencies to "review current pre-payment and pre-award procedures and ensure that a thorough review of available databases with relevant information on eligibility occurs before the release of any Federal funds". The Memorandum also directed the establishment of a single point of entry where paying agencies can access relevant data before determining eligibility for a benefit, grant, or contract award.
The Do Not Pay Business Center was developed to support federal agencies in their efforts to reduce the number of improper payments made through programs funded by the federal government. Improper payments occur when funds go to the wrong recipient, the recipient receives the incorrect amount of funds (including overpayments and underpayments), documentation is not available to support a payment, or the recipient uses funds in an improper manner. Many improper payments could be prevented if agencies had streamlined access to relevant databases when evaluating eligibility for a payment, as well as prior to making a payment.
Do Not Pay Business Center
The Do Not Pay Business Center provides automated tools, including a web-based single entry access portal, which federal agencies can use to gain access to an array of data sources to assist in determining whether an individual or entity is eligible to receive federal payments or engage in federal contracts or grants.
The Do Not Pay Portal will provide several options to search on the data sources:
- Online-provides a web-based user interface that users can access via an internet browser using a specific website to perform searches across multiple data sources. The searches would be conducted individually using the specified search criteria.
- Batch Processing-allows an agency to send a file to Do Not Pay so that it can be compared to the data sources in the Do Not Pay Portal. The results would detail any matches against the data sources and will be accessed through the Do Not Pay Portal.
- Continuous Monitoring-is accomplished by taking in an agency's vendor file, storing it within our infrastructure and comparing it against selected data sources for any matches. Our data sources will be refreshed on a regular basis and we will continuously compare the vendor file to the data sources when there is an update to either the vendor file or data source. If a match is identified, the agency will be notified via email that one has occurred and the agency will be able to view the details of the match via the Do Not Pay Portal.
Do Not Pay Data Analytics Services staff will also perform more advanced data analytic activities including identifying trends, risks, and other patterns of behavior that may warrant more thorough analysis and investigation on the part of the agency.
Benefits of Do Not Pay
During the pre-award process, Do Not Pay allows agencies to verify benefit program eligibility and ensure contract or grant eligibility. During the pre-payment process agencies can re-verify program eligibility for recurring payments and research irregularities based on the match results. During the post-payment process, agencies can utilize the Do Not Pay Data Analytics Services to perform analytics, fraud detection and payment recaptures.
Strategies
In support of our strategic goal to help agencies reduce improper payments, our strategies for the Do Not Pay program are to:
- Promote broad awareness of the Do Not Pay Business Center and its potential benefits
- Increase agency participation in Do Not Pay, while continuing to expand the value of our services
- Protect the privacy of individuals and the security of the data
Contact Us
If you would like additional information or to enroll in Do Not Pay:
Phone: 1-855-837-4391
Email: donotpay@stls.frb.org
Website: www.donotpay.treas.gov